FEDERAL COURT BARS CELEBRATION, FLORIDA WOMAN FROM PREPARING TAX RETURNS AND PROMOTING HOME-BASED BUSINESS TAX SCAM

The following press release was published by the US Department of Justice on Dec. 17, 2003. It is reproduced in full below.

FOR IMMEDIATE RELEASE WEDNESDAY, DECEMBER 17, 2003 WWW.USDOJ.GOV TAX (202) 514-2008 TDD (202) 514-1888 WASHINGTON, D.C. - The Justice Department today announced that the U.S. District Court for the Middle District of Florida in Orlando has entered a preliminary injunction barring Linda Borden, of Celebration, Florida, from preparing federal tax returns and promoting what the Justice Department’s court papers call an illegal tax scheme based on fraudulent home-based business deductions.

The Justice Department filed its complaint and asked for the preliminary injunction on Nov. 28, 2003, alleging that Borden promoted her scheme in 22 states and thereby defrauded the federal treasury of more than $15 million. Court papers allege that Borden helped her customers claim income-tax deductions for bogus home-based business expenses. The suit also names as defendants several of Borden’s businesses - New Innovations of Central Florida; Nex, Inc. and Nexclick LLC.

“Promoters of illegal tax schemes can face significant civil and criminal penalties,” said Eileen J. O’Connor, Assistant Attorney General for the Justice Department’s Tax Division. “Their illegal acts harm all taxpaying Americans.” The preliminary injunction, signed by Judge John Antoon II and agreed to by Borden, bars the defendant and her businesses from: •making false or misleading statements about the tax laws when selling or advertising tax-related products or services, including seminars, packages and consultation sessions; •helping individuals evade the payment of taxes or preparing false or fraudulent federal-income-tax returns; •providing tax advice or services for compensation, including consultation services, return-preparation services and representation services; and, •interfering with the administration and enforcement of federal tax laws.

In addition, the court also ordered Borden to send copies of the injunction order to all of her customers. More information about this case can be found at .

The Internal Revenue Service has issued public warnings about abusive home-based business schemes that can be found at and .

More information about the Justice Department’s efforts against tax-scam promoters can be found at . 03-698

Source: US Department of Justice