Justice Department Seeks to Shut Down Chicago Area Tax Return Preparer
Return Preparer Allegedly Makes False Claims for the Earned Income Credit on His Customers’ Federal Income Tax Returns
Gregory T. Goss, of Dolton, Illinois, reported false information on federal income tax returns he prepared for his customers, according to a new lawsuit filed by the U.S. Department of Justice today. In the complaint, the government alleges that Goss prepared false tax returns individually and doing business as G & V Tax and Insurance (G & V Tax), a tax preparation firm located at 625 E. 170th Street in South Holland, Illinois. The government’s complaint, filed in federal court in Chicago, Illinois, asks the court to bar Goss and G & V Tax from preparing federal tax returns for others.
According to the complaint, Goss and G & V Tax prepare fraudulent federal tax returns for their customers by fabricating itemized deductions and falsifying self-reported income. Goss and G & V Tax falsified self-employment income and itemized deductions to inflate claims for the Earned Income Credit (EIC) on their customers’ tax returns, according to the complaint. The EIC is a benefit for working people with low to moderate income. The EIC is a refundable credit meaning that it not only can reduce the amount of tax an eligible individual owes, dollar for dollar, but if some credit remains, it can result in a cash refund.
According to the complaint, the suit is a culmination of a lengthy Internal Revenue Service (IRS) investigation into Goss and G & V Tax. The complaint alleges that the IRS audited 237 tax returns prepared by Goss and determined that 147 — or 60 percent — of those returns either understated his customers’ respective tax liabilities or overstated their refunds, including claims for the EIC. These 147 tax returns prepared by Goss underreported $323,547 in taxes, the complaint alleges. The suit alleges that Goss’s misconduct damages the public fisc, undermines public confidence in the U.S. tax system, and harms his customers, who now may owe taxes, interest, and penalties.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return 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.