Premier Tax


Under Review: 
No Review
Date Breach Made Public: 
February 3, 2013
geo: 
Montgomery , AL
United States
Alabama US

The area of Alabama where the breach occurred is unclear.

Records Breached: 

Unknown

Breach Total Number: 
0
Source: 
Government Agency
Year of Breach: 
Type of organization: 
Type of breach: 

Six people who worked in tax preparation were charged with fraud and filing false tax returns in March of 2012.  Over 1,000 false tax returns were filed between October 2009 and April 2012.  The fraudulent returns totalled more than $1.7 million.  

More Information: https://www.databreaches.net/alabama-woman-pleads-guilty-in-id-theft-and...

UPDATE (01/29/2013): Two others were linked to the conspiracy and charged.  One of them was an employee of an unnamed Alabama state agency. She was able to access a state database of personal information and provide it to others in the identity theft ring.

UPDATE (3/13/2013): "Bruce King, the founder and operator of Premier Tax, was sentenced today in Montgomery, Ala., to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, the Justice Department and the IRS announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.

According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients’ tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced."

More Information: https://www.justice.gov/opa/pr/owner-tax-preparation-business-sentenced-...

UPDATE (4/15/2014): "The United States has requested that the federal district court in Montgomery, Ala., permanently bar Tonja Renee Toney and Jenika Williams from preparing federal income tax returns for others, the Justice Department announced today.

 

According to the complaint, which was filed yesterday in the U.S. District Court for the Middle District of Alabama, Toney and Williams each prepared tax returns as employees of Premier Tax in Montgomery in 2007 and 2008, and both pleaded guilty to charges related to their work at Premier Tax.  The complaint further alleges that both prepared false and fraudulent tax returns after being interviewed by Internal Revenue Service (IRS) agents in connection with their activities at Premier Tax.

 

The complaint alleges that both defendants have knowingly prepared federal income tax returns for customers that understated the customers’ tax liability by reporting false income in order to inflate the taxpayer’s claim to an Earned Income Tax Credit."

 

More Information: https://www.justice.gov/opa/pr/justice-department-sues-shut-down-alabama...