Justice Department Seeks to Shut Down Louisiana Tax Return Preparers
(STL.News) The United States has filed a complaint seeking to bar Louisiana tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced .
The civil complaint against Leroi Gorman Jackson and Mario Alexander, both individually and doing business as The Taxman Financial Services LLC, was filed in the U.S. District Court for the Eastern District of Louisiana. The complaint alleges that Jackson formed The Taxman Financial Services in 2013 and manages its six offices across Louisiana and Texas, and that Alexander started working there as a tax preparer in 2016. According to the complaint, in October 2019, the Civil District Court for the Parish of Orleans permanently enjoined Jackson from working as a Louisiana tax preparer.
The complaint alleges that Jackson and Alexander prepared tax returns claiming fabricated business expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleges that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits (because of the way the EITC is calculated, reporting more income can, up to a point, result in a larger refundable credit; similarly, claiming losses to offset higher income, thereby decreasing total reported income, can also generate a larger refundable credit).