Govt sues tax preparers in 5 states on tax credits

WASHINGTON (AP) - The Justice Department says it has sued seven tax preparers in five states to stop them from fraudulently claiming tax credits for first-time homebuyer and earned-income.

The department also has obtained an indictment of a Philadelphia man in the law enforcement initiative, charging Jonathan Brownlee with filing false federal tax returns. The government says Brownlee allegedly knew the people whose names he used for the first-time homebuyer credit were not entitled to it because they had not purchased a home and had not signed a contract to do so.

The lawsuits to halt the practices were filed in federal courts in Texas, Pennsylvania, Alabama, Florida and New Jersey.

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Online:

Justice news release: http://www.justice.gov/opa/pr/2011/February/11-tax-165.html

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Online:

http://www.justice.gov/opa/pr/2011/February/11-tax-165.html