No, it is not true. It is true that the Torah states twice, Leviticus 19:28 and Deuteronomy 14:1, that we are forbidden from getting tattoos (regardless of the type of tattoo) because we are the "children of God". The implication is that it would be a source of disgrace for God for His children to inflict wounds on themselves. However serious the transgression is considered it does not mean, however, that a person with a tattoo cannot be buried in a Jewish cemetery.