WASHINGTON – The United States has brought suit against Massachusetts resident Domingo J. Dominguez, seeking to bar him from preparing federal tax returns for others, the Justice Department announced today. The government alleges in its complaint that Dominguez operates DJD Professional Tax Services in Salem and Peabody, Mass., that provides tax return preparation services and e-filing, even though Dominguez’s electronic filing privileges have been revoked by the Internal Revenue Service.
The complaint further states that Dominguez – who allegedly prepared more than 8000 tax returns for the 2003-2006 tax years – claims fictitious and inflated deductions. According to the complaint, returns prepared by Dominguez had inflated charitable contributions and employee business expenses. Additionally the government asserts that there were fake charitable carry-overs from prior years, as well as fictitious moving expenses, and inflated and/or fictitious education credits. The complaint also states that the returns had fictitious business expenses, inflated or fictitious rental property expenses and inflated child care credits.
The complaint further states that Dominguez uses variations of his own Social Security number – as well as those of family members and unrelated individuals without their knowledge – in order to continue his e-filing business.
The government has asked the United States District Court for the District of Massachusetts to order Dominguez to turn over a list of his customers including their names, e-mail addresses, telephone numbers and Social Security numbers.
“The Tax Division will seek to stop fraudulent return preparers like Dominguez, as alleged in the complaint, dead in their tracks by obtaining civil injunctions to halt their tax preparation activities,” said Nathan J. Hochman, Assistant Attorney General at the Justice Department’s Tax Division.
Since 2001, the Tax Division has obtained injunctions against more than 310 tax return preparers and tax fraud promoters. Information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division.