Husband, wife duo accused of unlawful tax returns - WMC Action News 5 - Memphis, Tennessee

Husband, wife duo accused of unlawful tax returns

(WMC-TV) - A local tax company is in trouble after the justice department asked the Memphis federal court to shutdown their business.

The complaint accuses Grant and Madygun of preparing returns that unlawfully overstate funds and understate tax liability through various schemes.

Specifically, it alleges that the two have prepared unlawful returns on the Earned Income Tax Credit for their clients. The complaint estimated harm to the government is over $2 million for the 2010 tax year alone, and may be as high as $5 million.

A sign posted on the door of Taxes-R-Us told visitors to call.

When Action News 5's Lauren Squires called the business, Ahmed Grant answered the phone and denied knowing anything about the allegations against him.

People arriving at the business to receive tax help were shocked when they learned of the allegations.

"My friend was just telling me, 'I know where you can file your taxes and just get them done, and just get them back, and that's it,'" explained Marie Taylor.

Mike Conway, owner of Liberty Tax in Memphis, says many people can fall victim to this type of scheme. It is a scheme that often promises a higher tax return.

"Not knowing any better, you're likely to say, 'Heck, that's a better deal for me,'" explained Conway.

But he says there are plenty of flags, like asking you to claim a dependent, even if you do not have one.

Conway says avoiding these schemes altogether is simple.

"Know who you're dealing with, do some research," he suggested.

The complaint says Grant has had several tax preparation companies, all run under different names: SuperFast Taxes, MG Services, and most recently, Taxes-R-Us.

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