Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
WEDNESDAY, SEPTEMBER 19, 2007
WWW.USDOJ.GOV
TAX
(202) 514-2007
TDD (202) 514-1888

JUSTICE DEPARTMENT SEEKS TO BAR CHARLOTTE MAN FROM PREPARING FEDERAL TAX RETURNS FOR OTHERS

Tax Preparer Allegedly Fabricates Deductions and Credits for Customers


WASHINGTON, D.C. - The Justice Department announced today that it has sued a Charlotte tax preparer seeking to bar him from preparing federal income tax returns for others. The civil injunction suit, filed in the U.S. District Court for the Western District of North Carolina, alleges that Kodjovi Raphael Totou operates Queen City Tax Services, which claims fabricated deductions and credits on customers’ federal income tax returns.

According to the government’s complaint, Totou allegedly included a claim for federal fuel tax credit on every single tax return he prepared for the 2003 tax year, even though eligibility for the credit is extremely limited. The Justice Department this year has sought to shut down several tax preparers who claim similar bogus fuel credits. Information on those cases is available at http://www.usdoj.gov/tax/txdv07254.htm, http://www.usdoj.gov/tax/txdv07215.htm, http://www.usdoj.gov/tax/txdv07487.htm, and http://www.usdoj.gov/tax/txdv07594.htm.

The complaint alleges that Totou claimed credits for “absurdly large amounts” of gasoline. On one customer’s 2005 tax return Totou allegedly reported that the customer drove 61,807 miles for his business, but claimed a gasoline fuel tax for 25,110 gallons. The government complaint noted that in order for the numbers to be consistent, the customer’s automobile would have to get only 2.5 miles per gallon. Totou allegedly claimed fuel tax credit for 23,635 gallons of fuel on another customer’s return, which, at an estimated $2 per gallon, would have cost more than 67 times the customer’s reported total income.

Since 2001 the Justice Department has obtained injunctions against more than 255 tax return preparers and tax-fraud promoters. Information about these cases in available at http://www.usdoj.gov/tax/taxpress2007.htm. Information about the Justice Department's Tax Division can be found at http://www.usdoj.gov/tax.

Related Documents:

  United States v.
  Kodjovi Raphael Totou, etc.

Complaint for Permanent Injunction and Other Relief

(PDF document)


Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader


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