FOR IMMEDIATE RELEASE TAX

WEDNESDAY, JUNE 7, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Justice Department Sues Arizona Tax

Preparer
Government Alleges Man Prepared Fraudulent
Returns
WASHINGTON — The Justice Department announced today that it filed suit in
federal court in Phoenix to permanently bar Jeffrey R. Hunn, of Snowflake, Ariz.,
from preparing federal tax returns for others. According to the government
complaint, Hunn prepares fraudulent returns on which he fails to report his
customers’ wages. The Justice Department also seeks a court order requiring Hunn
to provide the government with his customers’ names, addresses, Social Security
numbers, telephone numbers, and e-mail addresses. The case will be heard in
Prescott, Ariz.

The suit alleges that Hunn submits Form 4852 (Substitute for Form W-2, Wage &
Tax Statement) containing false information with the returns he files in an attempt
to replace his customers’ correct W-2 and 1099 forms. On these forms, the
complaint states, Hunn falsely claims that his customer received no wages. He then
reports on the customer’s return either no income or significantly less income than
the customer actually had. According to the government, Hunn also claims refunds
on these returns of all the federal taxes withheld from his customers’ wages.

“People who prepare fraudulent tax returns expose themselves and their customers
to the risk of civil penalties and criminal prosecution,” said Eileen J. O’Connor,
Assistant Attorney General for the Justice Department’s Tax Division. “The Justice
Department and the Internal Revenue Service are cracking down on tax preparers
who file fraudulent returns.”

"We've seen more activity involving filing false W-2 and 1099 forms, which is why
this scheme reached the top of this year's 'Dirty Dozen' tax scams," said Mark E.
Matthews, IRS Deputy Commissioner for Services and Enforcement. "We remind
taxpayers that getting caught up in tax scams can lead to big headaches."

The government’s suit alleges that Hunn is following a scheme promoted by Peter
Hendrickson of Commerce Township, Mich. Claiming that only government
workers are subject to tax withholding, Hendrickson allegedly tells people to not
submit their W-2 and 1099 forms with their tax returns, and in their place submit
substitute or “corrected” W-2 and 1099 forms changing their reported income to
zero. The government recently sued Hendrickson and several of his followers to
recover erroneous refunds they allegedly received after filing returns similar to
Hunn’s. More about those suits can be found at
http://www.usdoj.gov/tax/txdv06219.htm.

Fraudulent returns with false W-2 and 1099 forms are first on the IRS’s 2006 list of
the “Dirty Dozen” tax scams posted at
www.irs.gov/newsroom/article/0,,id=154293,00.html.

More information about the Justice Department’s efforts to stop tax scams can be
found at www.usdoj.gov/tax/taxpress2006.htm. Information about the Justice
Department’s Tax Division can be found at www.usdoj.gov/tax.

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