Justice Department Seeks to Shut Down Ohio Tax Return Preparer
Return Preparer Allegedly Claimed False Tax Deductions and Tax Credits on Customers’ Tax Returns
The Justice Department announced today that the United States has filed a civil injunction suit against a Dayton, Ohio, man to enjoin him from preparing tax returns which understate his customer’s tax liabilities.
Rodger S. Thomas Sr. is alleged to have prepared tax returns for customers that claimed false business deductions on their Schedule C (profit and loss from business) and fictitious deductions on their Schedule A (itemized deductions) from 2006 through 2009 in a complaint filed in the U.S. District Court for the Southern District of Ohio. According to the complaint, Thomas also prepared false Forms 1099 in order to inflate customers’ income and maximize their Earned Income Tax Credits. The government alleged that Thomas would then report these payments on the Schedule C of his own income tax returns as expenses incurred by his business Ramjet Express. The complaint also alleged that Thomas failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he prepared.
In 2012, Thomas pleaded guilty to one count of making a false statement on an income tax return and one count of aiding and assisting in the filing of a false income tax return. He was subsequently sentenced to 24 months in prison. Thomas was released from prison in March 2014 and, according to the government’s complaint, has indicated that he intends to continue preparing tax returns. The United States seeks, among other things, that the court bar Thomas from preparing or assisting others in the preparation of a tax form that understates a tax liability. Additionally, the government is requesting that Thomas be required to identify himself on returns using his name and PTIN, keep a list of the names of individuals for whom he prepares federal tax returns, and provide the list of customers to the Internal Revenue Service (IRS) for inspection upon demand.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. 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. Rodger S. Thomas Sr.
Complaint for Preliminary and Permanent Injunction