Justice Department Files Lawsuit to Stop Las Vegas Man from Preparing Tax Returns
The Department of Justice filed a civil lawsuit today in the U.S. District Court for the District of Nevada to stop Bill Sunga Modina, who allegedly does business as 5M Financial and 6M Financial, from preparing federal tax returns. According to the complaint, Modina has prepared over 2,200 tax returns since 1992.
The complaint alleges that Modina understates his customers' federal tax liabilities by reporting false or inflated employee business expenses and inflated or fabricated charitable contributions. In addition, the complaint alleges that Modina has failed to provide his preparer identifying number on tax returns he prepared, thereby obscuring his identity as the tax return preparer. According to the complaint, Modina’s activities have resulted in an estimated average tax loss of over $4,400 per return, and the total tax loss could allegedly be as high as $9,680,000 due to Modina’s false and fraudulent return preparation.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. 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 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.
United States v. Bill Sunga Modina, etc.
Complaint for Permanent Injunction and Other Equitable Relief