Justice News

Department of Justice
Tax Division

Monday, November 29, 2010

Justice Department Asks Federal Court To Shut Down Colorado Tax Return Preparer

WASHINGTON - The United States has filed a complaint in federal court in Colorado against George Thomas Gaines of Aurora, Colo, the Justice Department announced today. The government’s lawsuit seeks to bar Gaines and his tax preparation companies from preparing federal tax returns for others.

According to the government’s complaint in the case, Gaines, through his companies, G&G Tax Service and American Benefits, prepares federal income tax returns for customers that claim losses for non-existent businesses and inflated or fabricated deductions in order to unlawfully understate tax liabilities or claim the earned income tax credit.

According to the complaint, the Internal Revenue Service has identified 210 returns prepared by Gaines between 2004 and 2007 that contain understatements of customers’ tax liabilities, out of 218 returns audited. The government alleges that these understatements have resulted in a tax harm of more than $900,000, and the total lost revenue could be as much as nearly $4 million.

This civil injunction action is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Since 2001, the Justice Department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about the Justice Department’s Tax Division can be found at www.usdoj.gov/tax.

Related Documents:

  United States v.
  GeorgeThomas Gaines, et al.

Complaint for Permanent Injunction

(PDF documents)

Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader

Accessibility Information


Updated April 6, 2015