Justice Department Sues to Stop Miami Tax Return Preparer from Preparing Federal Tax Returns for Others

Return Preparer Allegedly Claimed Fraudulent Education, Fuel Credits

Rose M. Chazulle, a tax return preparer in Miami has prepared fraudulent federal tax returns that claim education and fuel credits to which her clients are not entitled, according to a civil lawsuit filed by the Justice Department today.  The suit seeks to bar Chazulle and her company, RMC Professional Services Corporation, from preparing federal tax returns for others.

According to the complaint, Chazulle prepared federal income tax returns for customers that falsely claimed refundable credits, including American Opportunity Tax Credit and Lifetime Learning Credit.  Chazulle included the false education credits for customers who did not incur educational costs and otherwise did not qualify for this credit, the complaint alleges.  In addition, the complaint states Chazulle prepared tax returns that falsely claimed:

• Fuel tax credits for customers who had no businesses of any kind, even though the credit can only be taken when fuel is used for certain business purposes or to operate a school bus;
• Fabricated business losses, claimed on Schedule C, Profit or Loss from Business, even though the customers did not have a business; and
• Wages described as household help income in order to falsely claim a larger Earned Income Tax Credit than the customer otherwise would have been able to claim.

The complaint estimates that Chazulle’s conduct cost the United States over $14 million for the tax years 2011 to 2013.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016.  The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.  In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.  Information about these cases is available on the Justice Department’s website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.  If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.