Federal Court Shuts Down South Florida Tax Preparers | Takeover bid
On March 25, a federal court in the Southern District of Florida permanently barred two Miami-area tax preparers and their businesses from preparing federal tax returns or operating any tax preparation business. future tax returns. The court ordered that they return more than $60,000 back to the United States. The court also issued a narrower injunction against a third preparer and his company.
The complaint alleged that defendant Tammi King owned and operated two tax preparation businesses, Kingsworld Financial Services Corp. and Brightstar Management Corp. in South Florida, and employed defendant Norman Williams Jr. to prepare tax returns. The complaint also alleged that a third individual, John Gay Jr., owned a tax preparation business called Tax Doctor LLC, with which King was at one time affiliated. According to the complaint, King, Williams and Gay all prepared tax returns for clients that included fraudulent self-employment expenses, fake energy credits and fake charitable contributions. As an example, the complaint alleged that Williams, a Miami-area firefighter, fabricated more than $1,300,000 in fraudulent charitable cash contributions for 96 of his fellow firefighters for the 2019 tax year.
On Friday, the King, Williams and King companies consented to permanent injunctions. They must permanently cease all operations in any office, including offices located at 8876 NW 7th Avenue in Miami and 1130 W. Sunrise Boulevard in Fort Lauderdale. The court-ordered restitution of approximately $60,000 is based on fees associated with returns filed by King and Williams, including 238 returns Williams prepared for fellow firefighters between the 2018 and 2020 tax years.
The court also issued a narrower injunction against Gay and The Tax Doctor LLC, to which Gay consented. The injunction does not shut down The Tax Doctor LLC, but does require Gay and that business to enforce heightened substantiation and record-keeping requirements before preparing and filing returns claiming certain credits and deductions, including the child tax credit, the status of head of household for a taxpayer. , deductions for dependents and certain credits related to tuition fees.
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.
Besides, 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 advice 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.