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Monday, June 16, 2014

Court Bars Miami Tax Return Preparers from Preparing Returns for Others

Preparers Allegedly Falsified Tax Returns by Overstating Refunds Through Fabricated and Inflated Deductions and Credits

A federal district judge in the U.S. District Court for the Southern District of Florida permanently barred Lazaro Jesus Toyos and his daughter Dilma Carida Garcia, aka Dilma Toyos Garcia, and their respective companies, L. Toyos Tax Service Inc. and Toyos Garcia Tax Service Inc., from preparing federal income tax returns for others, the Justice Department announced today.

The suit alleges that the defendants prepared thousands of tax returns and unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients were not eligible to take. The defendants’ practices, as alleged, include fabricating Schedule C losses for non-existent businesses, falsely claiming the First Time Homebuyer Credit for taxpayers who did not actually purchase a home and falsely claiming American Opportunity Credits for taxpayers who did not acquire education expenses or attend college. The government alleged that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.

In the past decade, the Justice Department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department 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.

Related Materials:

United States v. Lazaro Jesus Toyos, et al.
Permanent Injunction Against Defendant Lazaro Jesus Toyos and Defendant L. Toyos Tax Services, Inc., Submitted By Stipulation and Consent
Permanent Injunction Against Defendant Dilma Carida Garcia, AKA Dilma Toyos Garcia, and Defendant Toyos Garica Tax Service, Inc., Submitted By Stipulation and Consent

Press Release Number: 
Updated July 7, 2016