A federal district judge in Jacksonville, Fla., permanently barred Thomas G. Bandzul from preparing federal income tax returns for others, the Justice Department announced today.
According to the government complaint, Bandzul repeatedly prepared federal tax returns that unlawfully understated customers’ federal tax liabilities. The suit alleged that the defendant concocted bogus losses, expenses, education credits, business expenses, and charitable contributions, which he falsely reported on his customers’ federal income tax returns.
The suit alleged that the Internal Revenue Service has examined over 250 tax returns prepared by Bandzul and found that over 90 percent of tax returns understated the taxpayer’s liability. According to the complaint, the total harm to the U.S. Treasury caused by Bandzul’s misconduct could exceed $17 million.
In addition, Bandzul allegedly filed returns that claimed a refund larger than what Bandzul had disclosed to the taxpayer. Once the refund was paid, the suit alleged, Bandzul retained the additional amount without the taxpayer’s knowledge.
Bandzul consented to the entry of the injunction.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .