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Humbloldt preparer hit with permanent injunction

November 10, 2009

A Humboldt preparer with a niche in the trucking industry was hit with a permenent injunction yesterday, but one that should enable her to continue doing tax work. From a Department of Justice press release:

A federal judge in Sioux City, Iowa, today barred a Humboldt, Iowa, woman, Gayle Lemmon, and her tax preparation business from claiming improper deductions on federal income tax returns. The court’s order, which Lemmon agreed to, also prohibits her from representing customers before the IRS and requires her to attend government-approved tax training classes.

The wording is strange. Most preparer injuctions permanently put the preparer out of business. This one just says "sin no more, and get some CPE." The preparer didn't fight the case. Maybe her cooperation led to leniency, or her sins were minor, or the government's case wasn't that overwhelming.

Link: Copy of injunction order (Update: link fixed)

Update, 12/4/09, from the comments:

Hello, I was the attorney who represented Gayle Lemmon in this lawsuit. In fact Gayle Lemmon did "fight" the case and was successful in her defense. You are right that the government essentially said, "Go and sin no more," and this was a vindication of Gayle and the fact that she prepared and continues to prepare proper tax returns. Thank you. John Ellsworth, Esq.

Tags: Gayle Lemmon.preparers.

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