Justice Department seeks to shut down Mo' Money Taxes - Action News 5 - Memphis, Tennessee

Justice Department seeks to shut down Mo' Money Taxes

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MEMPHIS, TN -

(WMC-TV) - The United States filed a civil injunction lawsuit seeking to shut down a Memphis based tax-preparation chain. At one time Mo' Money Taxes operated as many as 300 offices in 18 states, the Justice Department announced Wednesday.

The United States accuses Mo' Money Taxes and its owners, Markey Granberry and Derrick Robinson, and store manager Eumora Reese of creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns.

Memphis Congressman Steve Cohen commended the action from the nation's capitol.

"People need to be careful in who they ask to so their taxes," he said."We're trying to get a bill passed to require these tax preparers to be regulated someway through the IRS."

According to the complaint, Mo' Money Taxes' managers, licensees and employees prepared fraudulent returns that caused their customers to incorrectly report their federal tax liabilities and underpaid their taxes and charged customers bogus and unconscionably high fees.

"The nation's tax system relies on the integrity of tax preparers," said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally. "Most tax preparers are honest. We owe it to them and to all American taxpayers to use appropriate law enforcement tools to stop those who prepare fraudulent tax returns or who lure customers with deceptive loan products."

The complaint alleges that the estimated tax loss from fraudulent tax return preparation at Mo' Money Taxes offices in Memphis, Atlanta, Richmond and Jackson in 2011 exceeds $9 million.

Congressman Cohen is encouraging taxpayers to use the IRS' free tax preparation service called VITA. Click here for that website.

Markey Granberry failed to return calls for comment in this story.

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