Federal Court Permanently Bars Southern Florida Tax Preparer from Preparing Returns
Court Shuts Down Preparer as Sanction for Disobeying Prior Orders, Bars Sale of Customer Lists to Non-Party Entities Tax Preparer Used to Evade Prior Restrictions
(STL.News) A federal court in the Southern District of Florida has permanently enjoined a West Palm Beach tax return preparer and her business from preparing federal income tax returns for others, the Justice Department announced today. According to the court’s order, it issued the injunction in response to violations of a prior order in the case that had allowed the preparer and her business to prepare returns subject to certain restrictions.
In April 2017, the United States filed a complaint against Lena D. Cotton and Professional Accounting LDC LLC, that alleged the defendants prepared returns with improper education credits, manipulated filing statuses, and improper vehicle deductions, among other issues. In November 2017, the court permanently enjoined both defendants from this and other specific conduct and required defendants to engage a “neutral monitor” to “determin[e] and/or secur[e] compliance” with injunction.
In an August 2019 order, the court held Cotton and Professional Accounting LDC in contempt of the November 2017 order and “imposed additional limits on [d]efendants’ operations[,]” including restrictions on the number and type of returns they could prepare.