Federal Court Permanently Bars Illinois Woman from Preparing Federal Tax Returns for Others
A federal court has permanently barred a Bolingbrook, Illinois, woman and her tax preparation business from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Judy Brooks and Judy Brooks & Associates Financial Services Corporation (JBA) from acting as a tax return preparer and from continuing to operate a tax preparation business. Brooks agreed to entry of the injunction by U.S. District Court Judge Samuel Der-Yeghiayan of the Northern District of Illinois.
According to the complaint, Brooks prepares returns containing false expenses from non-existent businesses and claiming head of household filing status for customers who were ineligible, according to the suit. In addition, the complaint alleges that Brooks fabricates tax credits, including education credits, child and dependent care credits, and residential energy credits. These actions resulted in inflated tax refunds to which her customers were not entitled.
The complaint alleges the Internal Revenue Service (IRS) examined 59 income tax returns that Brooks or JBA prepared for tax years 2010 through 2013, and of those returns, 100 percent underreported the customer’s tax due. The IRS calculated a deficiency of approximately $6,729 per examined return, according to the suit.
The injunction order requires Brooks to provide the United States with a list of her customers since 2010, and to send a copy of the court’s injunction order to all customers for whom she prepared returns.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its 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 and tax scheme promoters. 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 here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.