Justice Department Sues to Shut Down Dallas Tax Return Preparer
The United States has asked a federal court in Dallas, Texas, to permanently bar Ricia Daniels and her company, Ricia’s Convenience Tax Service, from preparing federal tax returns for others, the Justice Department announced today.
The complaint alleges that, through her business, Daniels understates her customers’ federal tax liabilities by reporting false or inflated personal and business expenses, reporting false or inflated education expenses and improperly claiming other tax credits. According to the complaint, an Internal Revenue Service (IRS) investigation revealed that 97 out of 98 income tax returns prepared by Daniels and audited by the IRS resulted in understatements of her customers’ tax liabilities. The government alleges that the tax harm caused by these understatements exceeds $500,000.
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. Ricia Daniels, et al.
Complaint for Permanent Injunction and Other Relief