Federal attorneys claim Morganza tax service involved in fraud scheme

Federal attorneys asked a judge Monday in Baton Rouge to issue an injunction that would block a Morganza woman and her tax service from tax-preparation work that allegedly has cost the Internal Revenue Service more than $2 million.

The civil complaint was filed against Ann M. Williams and Ann’s Tax Service LLC by Justice Department trial attorney Natalie T. Sexsmith and Assistant U.S. Attorney John G. Gaupp.

The lawsuit was assigned to U.S. District Judge James J. Brady. The judge had not issued any injunction as of late Monday afternoon.

Williams was reached at her tax-service telephone number Monday in Morganza, but the call was disconnected after she was asked for comment on the civil suit.

A court document filed late Monday bore Williams’ signature and those of her attorney, John Pierre, and Sexsmith.

In that document, Williams agreed to a permanent ban against her tax-preparation work. But she retained the right to oppose any future criminal charges or allegations of liability for losses.

Williams has not been charged with any criminal offense, but the federal attorneys allege in the civil suit that she “engaged in a tax fraud scheme by reporting a variety of false positions in her customers’ federal income tax returns.”

Williams, either individually or as her tax service, filed “at least 1,110 federal income tax returns between … October of 2010 and July of 2012,” the civil suit alleges.

A sample of 262 of those returns showed an average loss to the government of $4,554 per return, according to the suit filed by Gaupp and Sexsmith.

The federal attorneys also asked the judge to order Williams to turn over a list of all of her customers and their contact information.