A federal judge in Chicago has permanently barred Matoi Rimes, individually and operating as Rimes Accounting Service, from preparing federal tax returns for anyone who is not a member of his immediate family, the Justice Department announced today. Rimes is also barred from owning, working for, or volunteering for a tax return preparation business.
The court also ordered Rimes to provide his customer lists to the government and to mail copies of the court order to his customers.
According to the government complaint, Rimes prepared 3,111 tax returns since Jan. 1, 2006. Court papers allege that Rimes inflated and fabricated deductions on his customers’ tax returns, and stole over $7,000 in improperly-claimed customer tax refunds using the Refund Anticipation Loan Program (RAL). On at least 16 customer returns submitted to RAL, Rimes falsely reported inflated refund amounts, compared to refund amounts actually claimed by customers. Rimes deposited the inflated refund amounts into his bank account and retained the difference between the inflated amount and the amount reported to his customers, without the consent or knowledge of those customers.
Based on examination results of a small portion of Rimes’ customers’ returns, court papers allege that actual government tax losses are over $230,000.
Since 2001, the Justice Department’s Tax Division has obtained more than 460 injunctions against tax-fraud promoters and tax preparers. Information about these cases is available on the Justice Department Web Site.