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Friday, January 9, 2015

Federal Court Bars Texas Woman and Related Businesses from Preparing Federal Tax Returns

A federal court in Dallas has permanently barred Ricia Daniels and Ricia Daniels doing business as Ricia’s Convenience Tax Service and Ricia’s Convenience Tax Service Inc. from preparing tax returns for others, the Justice Department announced today.

U.S. District Judge Jorge A. Solis entered the order, which the defendants agreed to, on Jan. 9.

The order requires the defendants to turn over to the United States a list of all persons for whom they prepared federal tax returns since Dec. 1, 2013.  The order further authorizes the United States to monitor the defendants’ compliance with the terms of the injunction.

The complaint alleged that the defendants prepared returns for their customers that falsely claimed improper or inflated deductions of medical expenses, unreimbursed employee business expense and other deductions on the customers’ Schedule A (Itemized Deductions), improper or inflated business expense deductions on Schedule C (Profit and Loss from Business Sole Proprietorship), improper or inflated education expenses, and improper or inflated fuel taxes in order to understate income and overstate the taxpayers’ refunds.  The complaint also alleged that the defendants have filed tax returns without the permission of some customers.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  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 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.

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Updated May 18, 2016