By By Lydia Grimes – features writer
A local independent tax preparer suspected of tax fraud who was out on a bond deal was arrested again Thursday and was in jail as of Friday, law enforcement officials said.
Amy Madsen, of 2050 Pea Ridge Road, was indicted by a grand jury last month on eight counts of preparing false tax returns.
She was free on $25,000 bond - a reduction from the original $250,000 bond - on a deal that she not prepare any more tax returns and that she return any tax documents to former customers.
Madsen's bond was revoked at a hearing Thursday, Escambia County Sheriff Grover Smith said, because Madsen had not followed the terms of the bond reduction.
Smith said Madsen was arrested after the hearing and was in the Escambia County Detention Center as of Friday.
The original case relates to accusations that Madsen under-reported her own income and incorrectly prepared returns for her customers, District Attorney Steve Billy has said. The investigation by the Department of Revenue was led by Special Agent Robert McVey Jr.
According to the indictments handed down in February, in five of the eight counts, she was alleged to have claimed deductions for customers who were not entitled to them, as high as $21,000.
The indictment also stated that Madsen was aware that the customers were not entitled to the deductions.
The indictments also said that she had falsified her own returns. In 2003, she claimed she earned $6,526 when in actuality she made $63,084. In 2005, she reported taxable income of $6,693, while she actually made $40,037.60 in 2004, according to the indictment.
Last year, she reported a taxable income of $1,017 in 2005, while she actually made $39,279.56, the indictment alleged.
Anyone with questions about tax returns prepared by Madsen, can call Steve Parker at 867-9588.
Parker, who has an office at East Brewton City Hall, has advised any former customers of Madsen's to have their taxes for the past three years reviewed by a reputable tax preparer. Parker can also review old claims, he said.
If any problems are found, those taxes can be refiled before this year's April 17 tax deadline without any penalty.