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Friday, August 19, 2016

Federal Court Orders Florida Tax Return Preparer to Stop Preparing Federal Tax Returns for Others

Return Preparer Allegedly Claimed Fraudulent Education and Fuel Credits

Today a federal court in Miami, Florida, permanently enjoined Rose M. Chazulle and her company, RMC Professional Services Corporation, from preparing federal tax returns for others.  The defendants agreed to the civil injunction orders entered against them.   In addition to barring the defendants from preparing, filing, or assisting in the preparation or filing of federal tax returns and amended returns, the court ordered the defendants to deliver a copy of the injunction to all of their customers since Jan. 1, 2010.

According to the complaint, the defendants prepared federal income tax returns for customers that falsely claimed:

  • Refundable credits, including American Opportunity Tax Credit and Lifetime Learning Credit for customers who did not incur educational costs and otherwise did not qualify for these credits;
  • 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 an Earned Income Tax Credit or to create a larger refund than the customer otherwise would have been able to claim.

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.

Press Release Number: 
Updated August 19, 2016