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
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
-- Deepa Bharath