Kingsport Tax Preparer Indicted for Fraud

Tax Preparer Donna K. Rees didn’t just calculate deductions; she created them, federal authorities allege.

Rees, who also has used the names Donna K. Blessing and Donna Blessing Bortz, is accused in a federal indictment of coming up with hundreds of thousands of dollars in fake deductions for some two dozen customers of her B & B Tax Service business in Kingsport.


Rees already faced a bank fraud indictment filed by Smith against her in January. In that case, she is accused of tricking the Washington County Bank into granting a $200,000 loan for a mobile home that was never purchased. She also is accused in that case of forging documents purporting to prove the sale of that mobile home and forging the signature of the operator of Affordable Living, a Rogersville mobile home dealership she claimed as the seller.

Rees is free on bond and faces a May trial.
The maximum statutory penalty for each count of aiding and assisting in the preparation of a false tax return in violation of 26 U.S.C. § 7206(2) is three years imprisonment and a fine of $100,000. The maximum statutory penalty for obstructing and impeding the admistration of the Internal Revenue laws in violation of 26 U.S.C. § 7212(a) is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Rest of the story at Knox News.


2 thoughts on “Kingsport Tax Preparer Indicted for Fraud

  1. What happens to the people who used Donna for
    their tax returns and knew she was dishonest. People went to her each year because they were aware their returns would “come out in their favor”. None of this news was startling to Donna’s tax clients or other business clients.

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