Federal Court Shuts Down South Florida Tax Return Preparer
Return Preparer Allegedly Claimed Fraudulent Credits and Deductions
A federal court has ordered West Palm Beach-area tax return preparer Paul Jean not to prepare federal tax returns for anyone except himself, the Justice Department announced today. The order was entered after Jean failed to respond to the United States’ civil complaint.
According to the complaint, Jean has operated under the business names Whiz Tax and Rejoice Tax Services. The complaint alleges he has prepared returns that claim fabricated or inflated tax credits including claiming improper earned income tax credits, education credits, or fuel credits. In addition, Jean allegedly prepared returns that report false or inflated deductions on Schedule A (Itemized Deductions), such as deductions for mortgage interest paid or charitable contributions, or on Schedule C (Profit or Loss From Business), such as expenditures for supplies or office expenses.
The Internal Revenue Service (IRS) estimates that Jean, directly or indirectly, has prepared and filed more than 3,000 tax returns since 2012, according to the complaint, and that the harm Jean’s conduct has inflicted on the U.S. Treasury may be in the millions of dollars.
Return preparer fraud is one of the IRS’s 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.