It’s amazing how often we see it in this industry, but it’s far more common – unscrupulous preparers. A federal court in the Eastern District of New York has permanently enjoined a tax return preparer and her Brooklyn-based business from preparing federal tax returns for others and from owning, operating, or working for any tax return preparation business in the future. The case alleged that Melida Portorreal, through her tax preparation company, International Travel Multi & Tax Corp., prepared fraudulent federal income tax returns for others. According to the complaint, Portorreal prepared and filed fraudulent federal tax returns using a variety of schemes and cost the government over $1 million in lost revenues.
Nearly the same scheme played out in Texas, too, where a Houston-area tax return preparer has been barred from preparing federal tax returns for others and from owning, operating, or franchising any tax return preparation business in the future. The court found that Hollins Ray Alexander engaged in conduct that substantially interferes with the proper administration of the tax laws, warranting a permanent bar on acting as a tax return preparer for others. As alleged in the complaint, Alexander prepared tax returns for others in which he overstated customers’ refunds by fabricating deductions or falsely claiming credits to which customers were not entitled.
…And in Florida, the United States filed a complaint in the U.S. District Court for the Southern District of Florida seeking to bar nine Florida tax return preparers and their associated business from assisting in the preparing of federal income tax returns for others.
The complaint alleges that Richard Louis, Teddy Davis, James Merrill, Daniel Ouku, Demetrius Knowles, Harold Bornelus, Joseph Garrett, Marlyne Wah and Romeo Davis prepared and filed thousands of federal income tax returns for customers through or in connection with the unincorporated entity known as Taxman. According to the complaint, one scheme used by the defendants was to claim fraudulent Residential Energy Credits on their customers’ tax returns.