BRIEFLY IN THE NEWS Feds sue Newport...



Feds sue Newport Beach accountant

Newport Beach tax preparer Kelly David is one of five people named

in a lawsuit filed by the U.S. Justice Department Tax Division

stating that he and others prepared federal income tax returns using

bogus information, U.S. Attorney's office officials said.

The complaint, seeking to stop the company and its associates from

preparing further tax returns, alleges that David and the others

repeatedly prepared tax returns for their customers using false and

inflated deductions for charitable contributions, home office and

business expenses.

According to court papers, almost all of the tax returns prepared

by Western Tax Services Inc. resulted in refunds and the company's

business grew rapidly by word of mouth, said Thom Mrozek, spokesman

for the U.S. Attorney's Office.

The company targeted primarily middle-income wage earners and

military personnel in Orange and San Diego counties, he said. More

than 90% of the returns examined by the IRS underreported customers'

tax liabilities, Mrozek said.

High bacteria levels close two beaches

The 10th Street beach in Newport Bay and about 300 feet of Corona

del Mar Beach were closed Tuesday because of high levels of bacteria,

Orange County Health Care Agency officials said.

Beachgoers are asked to avoid contact with ocean and bay waters in

these areas.

-- Deepa Bharath

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