Activist’s daughter barred from preparing taxes

Posted Feb. 19, 2009, at 2:49 p.m.

PORTLAND, Maine — Acting on a complaint by prosecutors, a federal judge has barred the daughter of tax-cap activist Carol Palesky from preparing tax returns or representing clients in federal tax matters.

U.S. District Judge George Singal issued a permanent injunction against Donna Hamilton, who provided tax services as East Coast Accounting from her mother’s home in Topsham.

The complaint by U.S. Attorney Paula Silsby said many of the returns prepared by Hamilton contained fabricated or inflated deductions for business expenses, capital losses or employee education credits.

Palesky gained prominence in 2004 when she led an unsuccessful referendum campaign to cap Maine’s property taxes at 1 percent of assessed valuation. A federal court later banned her from preparing taxes after the government accused her of filing returns with inflated deductions and credits.