Department of Justice Seeks to Shut Down Florida Tax Preparer | Takeover bid
The United States sued for a civil injunction to restrain Karla Welch and her companies, Karla R. Welch LLC and Kwik Services LLC, from owning or operating a tax preparation business and preparing returns of income. The complaint also asks the court to order the defendants to return the fees they obtained by preparing false and fraudulent tax returns.
The complaint, filed in the U.S. District Court for the Intermediate District of Florida, alleges that Welch, through Karla R. Welch LLC and Kwik Services LLC, owns and operates a tax preparation business with up to 12 stores. in Florida, Georgia and the North. Caroline. According to the complaint, Welch and his companies prepare and file tax returns to wrongfully increase their clients’ refunds and profit from high and often undisclosed preparation fees at the expense of their clients and the Treasury. The complaint alleges that the defendants prepared returns for customers who:
• Wrongly claiming the earned income tax credit
• Report manufactured businesses and related business income and expenses
• Report fabricated deductions, including for alleged employment-related expenses
• Claiming fake college credits
Assistant Deputy Attorney General David A. Hubbert of the Justice Department’s Taxation Division made the announcement.
Tax preparer fraud is one of the IRS frauds Dirty dozen tax scams and taxpayers looking for a tax preparer should stay alert. (More information can also be found here.) The IRS has information about its website for the selection of a tax preparer, launched a free directory federal tax preparers and provides information on how to avoid “ghost” tax preparers, whose refusal to sign a declaration should be a wake-up call for taxpayers. The IRS also has a control List things to remember when filing taxes in 2022.
In addition, IRS Free File, a public-private partnership, provides free online tax preparation and filing options on partner IRS websites for individuals with adjusted gross incomes below $72,000. For people with income above this threshold, IRS Free File offers electronic federal tax forms that can be completed and filed online for free. The taxman has tips on how seniors and people with low to moderate incomes can also get help or advice on tax preparation.
Over the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information on these cases is available on the Ministry of Justice website. An alphabetical list of persons prohibited from preparing returns and promoting tax schemes can be found on this page. If you believe any of the individuals or companies being ordered may be violating an injunction, please contact the Tax Division with details.