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Department of Justice
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FOR IMMEDIATE RELEASE
Friday, February 22, 2019

Federal Court Bars Florida Tax Return Preparer and Business From Preparing Tax Returns

Court also requires that the preparer and business disgorge nearly a half-million dollars in ill-gotten gains that they received in the form of tax preparation fees

A federal court in Orlando, Florida, entered a permanent injunction against Ndaiziwei Kaya Chipungu and Society Financial Solutions LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department today announced. The order was signed by Judge G. Kendall Sharp of the U.S. District Court for the Middle District of Florida. 

The court also ordered that Chipungu and Society Financial Solutions LLC disgorge $487,879.24, representing the ill-gotten gains that they received for the preparation of tax returns.

The government alleged that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit. The government further alleged that the defendants prepared tax returns that falsely claimed the customers had non-existent businesses. Defendants also allegedly prepared returns with fabricated unreimbursed employee business expenses to falsely lower customers’ reported taxable income.

The court concluded that the government’s allegations established that the “Defendants engaged in business practices that violate the Internal Revenue Code, that the Government is entitled to a permanent injunction, and that Defendants unjustly enriched themselves through their wrongful conduct.”

The IRS has information on its website about selecting a return 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.

Topic(s): 
Financial Fraud
Tax
Press Release Number: 
19-152
Updated February 22, 2019