According to a press release by the U.S. Attorney's Office for the Eastern District of Tennessee, a grand jury has found probable cause to indict James and Beverly Beaver, both 67, for conspiracy to defraud the United States and by filing false claims for tax refunds. Mr. Beavers was formerly employed as a research director for an engineering institute at the University of Tennessee.
According to the indictment, the Beavers filed a false 2008 tax return and false amended 2006 and 2007 tax returns, which were filed by their accountant Penny Jones, who is/was a partner in PMDD Services, LLC, an Idaho-based tax return preparation firm. The 2008 return claimed that the Beavers were entitled to a nearly $600,000 refund, and the amended tax returns allowed the Beavers to receive $193,056 and $202,625 in tax refunds. The accountant was then paid $59,405 for her services. The Beavers also allegedly tried to hide their assets from possible IRS collection by transferring real estate title for their personal residence and a store that they own to "nominee trusts."
The Beavers are being charged with these tax crimes in the Eastern District of Tennessee, while the accountant and others in her firm are being charged with various tax crimes in the Southern District of Florida. If convicted, each defendant faces a maximum potential sentence of 20 years in prison, a criminal fine up to $1 million, and possible restitution to the IRS.