Federal Court Enjoins Dallas Area Tax Preparer from Preparing Tax Returns
Preparer included claims for false business losses and expenses on client returns
A federal court in the Northern District of Texas, Dallas Division, has permanently enjoined a Dallas-area tax return preparer from preparing federal income tax returns for others pursuant to a stipulated permanent injunction.
The civil complaint filed in the case alleged that Keysha Briseño continually and repeatedly included false business losses and fabricated business expenses on some of her clients’ returns. According to the complaint, she and her spouse allegedly own and operate a tax preparation business known under the names Tax Genius LLC; Tax Genie; and K&J Tax Service. The complaint alleged that Briseño controls Tax Genius and has prepared over 4,200 tax returns between 2017 through 2019, more than 25% of which contained fabricated business losses. The complaint further alleged that after the IRS revoked her federal return preparer identification in 2012, Briseño continued to prepare tax returns using her sister’s preparer identification. According to the complaint, Briseño’s fraudulent return preparation activities have caused significant harm to her customers and resulted in millions of dollars in tax losses to the United States.
Briseño consented to the entry of the injunction, which permanently bars her from acting as a federal tax preparer either as herself or doing business as Tax Genius, Tax Genie, or K&J Tax Service. The injunction further bars her from assisting or advising anyone in connection with any tax matter and from having an ownership interest or working for any other entity that prepares tax returns or represents clients before the IRS.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
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 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.