Federal Court Permanently Bars Two New York Brothers From Preparing Tax Return
WASHINGTON -- A federal court in Brooklyn has permanently barred Archie J. Pugh, Jr. and his brother Theodore Pugh from preparing federal income tax returns for others, the Justice Department announced today. The complaint in the case alleged that the brothers operated Archie’s Tax and Accounting Service in Jamaica, N.Y.
In the civil injunction order, Judge Nicholas G. Garaufis of the U.S. District Court for the Eastern District of New York found that the Pughs charged customers $250 to prepare income tax returns using the “claim of right tax-evasion scheme,” which falsely claims that compensation paid for work is not subject to income tax. The court found that their misconduct caused losses to the U.S. Treasury exceeding $2.4 million.
The injunction order requires the Pughs to provide the Justice Department a list of their customers’ names, addresses, e-mail addresses, and Social Security numbers.
Since 2001, the Justice Department’s Tax Division has obtained 295 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division.
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