Local Tax Preparer Busted for Not Paying His Taxes

Jan 4, 2012 at 12:30 pm
Although Richard Gray Sr. spends some of the year working at a Chrysler plant in Indiana, he's been running a nice little side business out of his home in North St. Louis: Filing tax returns for friends, family and co-workers using TurboTax. He's even expressed a desire to do tax-prep full-time.

Trouble is, a lot of what he's doing is deceptive and illegal, according to a civil injunction suit filed yesterday in federal court by the U.S. Department of Justice. (It's not exactly a criminal charge, but rather a request that the Court shut down Gray's operation).

Now that an IRS investigation has concluded, the government alleges that:

  • In 2009, Gray earned between $20 and $100 per return on 134 returns, but didn't report it as income. 
  • He creates sham businesses and fictitious dependent children to increase tax refunds for his clients.
  • In so doing, he cheated the U.S. Treasury during 2009 alone out of an estimated $500,000.
The case has been assigned to Judge Rodney Sippel.
USA v. Richard Gray Sr.