"Unscrupulous tax preparers prey on people fearful of running afoul of IRS; e-filing safest, easiest way for fast refund," --Petz Enterprises, producers of TaxBrain Online Tax Service

TRACY, Calif.--(BUSINESS WIRE)--Jan. 31, 2005--"Fraud investigation results in Passaic County tax preparer charged with masterminding $700,000 tax fraud scheme. Alleged scam may be largest ever investigated in New Jersey; 1,970 fraudulent tax returns cited." (via Internet, March 2, 2004).

"The Internal Revenue Service's Miami criminal investigation division said the government has filed two indictments against three people for conspiracy to make and present fraudulent tax returns to the IRS. The fraudulent schemes typically involved recruiting taxpayers with promises of larger refunds." (South Florida Business Journal, May 17, 2004).

According to Leroy E. Petz, Sr., Petz Enterprises President, "Many people use professional tax preparers because they feel it is the best way to receive the maximum refund, or they're simply afraid the complications and intricacies of tax preparation will land them in serious trouble. Unfortunately, they're unwittingly exposing themselves to a whole range of schemes, chicanery and criminal actions.

"However," he continued, "online tax preparation and filing, now in its fifth consecutive year, continues to be proven protection, as well as significantly speeding up refunds. Our online software is so easy to use, comprehensive and intuitive, the taxpayer simply fills in the requisite forms, and TaxBrain Online® does the rest. Should the taxpayer need guidance or assistance, TaxBrain Online features 'instant chat' connecting live support personnel to help with any question that may arise.

"From the simplest 1040EZ to a small business return, the taxpayer is in total control of the process," explained Mr. Petz. "Many companies advertising e-filing actually take the taxpayer's preliminary data, creating the return off-line. In many cases, tax returns have been outsourced to India and other offshore sources. We feel that an American's tax return should be maintained to the highest standards of accounting professionalism, as well as absolute privacy - right here at home. Every TaxBrain Online return stays in the United States, and is maintained in the strictest confidence," he stated.

TaxBrain e-filers speak out

Linda Seitz, Bellevue, Nebraska said, "This was great! I have always had someone figure my taxes in the past. Now I know I can do it myself with TaxBrain." Angela Saunders of Gulfport, Mississippi commented, "This is the best thing since filing taxes. I did not understand the forms for the state tax and I had myself owing taxes; with TaxBrain I got a refund."

"The IRS and other federal agencies are aggressively pursuing and successfully prosecuting promoters of these schemes and many of their clients for fraud and tax evasion. Participation in these schemes can result in imprisonment, fines and repayment of taxes owed with interest and penalties. Even innocent taxpayers involved in these schemes can face a staggering amount of back interest and penalties," Mr. Petz concluded.

About Petz Enterprises, Inc.

Petz Enterprises, Inc. (a closely-held California corporation) is a software development company and a leading provider of tax preparation and filing solutions for the professional and consumer markets, helping to automate and simplify federal, state and local tax compliance. PEI's Crosslink® line of professional tax software products enable tax practitioners and service bureaus to accurately prepare and file large volumes of individual tax returns. Founded in 1974, Tracy, CA-based PEI is dedicated to serving the needs of the professional tax community and individual taxpayers worldwide. For more information, visit http://www.petzent.com.