Department of Justice Seal Department of Justice
FOR IMMEDIATE RELEASE
TUESDAY, JUNE 24, 2008
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(202) 514-2007
TDD (202) 514-1888

JUSTICE DEPARTMENT SEEKS TO SHUT DOWN DALLAS TAX PREPARER

Tax Preparerís Business Allegedly Filed Returns with $1 Million in Bogus Fuel Tax Credit Claims on More Than 1,100 Returns


WASHINGTON Ė Lennon Madzima, a Dallas tax return preparer, has been sued for allegedly claiming bogus deductions and credits on customersí federal tax returns, the Justice Department announced today. The civil injunction suit, filed in the U.S. District Court for the Northern District of Texas, seeks to bar Madzima and his Dallas business, Sameday Tax Services, from preparing federal tax returns for others.

According to the government complaint, Madzima included fabricated claims for federal fuel tax credit, telephone excise tax refunds and other deductions on tax returns that he prepared since 2005. For example, it is alleged in the complaint that Madzima prepared 2005 and 2006 tax returns for one customer claiming bogus fuel tax credits for purported fuel purchases that would have cost the customer in excess of $13,000 more than he reported in income in those years.

The governmentís complaint also alleges that Madzimaís false claims for federal fuel tax credits appeared on more than 1,100 returns since tax year 2004 and exceeded $1 million. Fraudulently claiming the fuel tax credit is one of the Internal Revenue Serviceís "Dirty Dozen" tax scams for 2008.

"In the past year, the Justice Department has obtained injunctions shutting down several tax preparers who allegedly claimed bogus fuel credits," said Nathan J. Hochman, Assistant Attorney General of the Justice Departmentís Tax Division. "Since 2001, the Justice Departmentís Tax Division has obtained injunctions against more than 340 tax-return preparers and tax-fraud promoters."

Information on the cases involving allegedly bogus fuel credits is available at http://www.usdoj.gov/tax/txdv07254.htm, http://www.usdoj.gov/tax/txdv07487.htm, http://www.usdoj.gov/tax/txdv07828.htm, and http://www.usdoj.gov/tax/txdv08295.htm. More information about the Tax Divisionís injunction cases is available on the Justice Department Web site, as is information about the Justice Departmentís Tax Division.

Related Documents:

  United States v.
  Lennon R. Madzima, 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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