Justice Department Files Civil Action to Shut Down Chicago-Area Tax Return Preparer
(STL.News) The United States has filed a complaint seeking to bar a Chicago-area tax return preparer from preparing federal income tax returns for others, the Justice Department announced today.
The civil complaint against was filed in the U.S. District Court for the Northern District of Illinois and alleges that Boyd prepared federal income tax returns for Chicago-area taxpayers that significantly understated his customers’ tax liabilities by fabricating business losses. The suit alleges that Boyd fabricated or exaggerated his customers’ business expenses. The suit also charges that Boyd allegedly fabricated child care expenses on at least one of his customers’ tax returns.
According to the complaint, the Internal Revenue Service (IRS) interviewed 15 of Boyd’s customers, each of whom stated that they did not incur the business expenses reported on their returns prepared by Boyd on their behalf, nor did they give Boyd any reason to believe that such expenses were legitimate. The complaint further alleges that, by repeatedly understating his customers’ tax liabilities, Boyd has caused the United States to lose substantial tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant (more information can also be found here).