SPALDING COUNTY, Ga. — Only Channel 2 Action News was present as state agents raided a Georgia tax preparer's office.
State revenue investigators told Channel 2 investigative reporter Mark Winne that thousands of tax filers could owe a lot of money.
Josh Waites, the state revenue special investigations chief, said the raid on a Spalding County tax preparer’s office was one of nine businesses raided over the last two days.
“We arrested Deborah Powers, a tax preparer here at Tax Time in Griffin, Georgia,” Waites said. “She’s accused of preparing a fraudulent tax return for an undercover that we sent in."
Winne asked Powers if she broke the law as agents escorted her to a police cruiser in handcuffs.
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“Ma'am, did you break the law?” Winne asked Powers.
“Not to my knowledge,” Powers answered.
“Did you make up any deductions?” Winne asked Powers.
“No sir,” she answered.
“Do you know they have undercover video?” Winne asked Powers, but she didn’t answer.
Agents said Powers told the undercover agent he still owed the federal government. With the information he provided, he should’ve owed more and he should’ve owed the state, but she came up with a state refund and made up medical and dental expenses, mortgage interest and charity deductions with a total of more than $8,000.
Waites told Winne that the state revenue office is reviewing 1,400 tax returns from Tax Time, with refunds totaling near $1 million.
“If somebody got a refund they didn’t deserve, they’re going to be billed,” Waites said.
Waites said Fayette County tax preparer Kayla Bryant faces similar charges after giving the undercover agent federal and state refunds that his information didn’t justify. Bryant maintains her innocence.
“Did you break the law?” Winne asked.
“No,” Bryant said.
“You didn’t inflate what people should be getting back on their taxes?” Winne asked.
Bryant shook her head to indicate no.
Waites said taxpayers victimized by preparers making up deductions may not only owe taxes but penalties and interest, too.
He said the Fayette County Sheriff's Office assisted in the investigation.
Cox Media Group
