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Thursday, April 8, 2010

Federal Court Shuts Down Nebraska Tax Preparer

Lexington, Nebraska CPA Allegedly Helped Customers Understate Income and Fabricate Deductions Costing U.S. Treasury Millions in Lost Revenue

WASHINGTON – A federal court in Lincoln, Neb., has issued a permanent injunction barring a Lexington, Neb., tax preparer, Donald R. Ondrak, and his company, Don Ondrak P.C., from preparing tax returns for others, the Justice Department announced today. Ondrak agreed to the injunction order.

The government complaint in the civil case alleged that Ondrak prepared federal income tax returns for customers that unlawfully understate income and employment tax liabilities by under-reporting income, overstating expenses and claiming improper deductions for non-deductible personal expenses.

The complaint said that Ondrak helped clients use sham entities and bogus transactions in order to fraudulently understate their tax liabilities. According to the complaint, the Internal Revenue Service examined approximately 400 returns that Ondrak prepared and found that a significant number of them understated the customer’s tax liability. The complaint said the tax loss from Ondrak’s alleged misconduct between 2004 and 2007 was estimated to be in the tens of millions of dollars.

In the past decade, the Justice Department’s Tax Division has obtained more than 460 injunctions against tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department’s Web Site.

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Updated September 15, 2014