The Justice Department has announced intentions to ban two Louisiana tax return preparers from owning or operating a tax return preparation business.
Leroi Gorman Jackson and Mario Alexander are alleged to have fabricated business expenses, as well as claimed various false tax deductions and credits, while working at The Taxman Financial Services.
The firm was established in 2013 by Jackson and operated over six offices in Louisiana and Texas, before appointing Alexander as a tax preparer in 2016.
The allegations also include charges on the grounds of falsifying business incomes and expenses in order to increase claims for earned income tax credits.
According to the Justice Department, Jackson and Alexander have filed over 12,400 tax returns since 2017, often using other tax preparers’ personal identifying information.
The offence was carried out by Alexander, at least, in an attempt to “avoid an IRS investigation” as to whether he has complied with requirements to ensure whether a customer is “legitimately entitled to various tax credits”.
The department’s statement added: “According to the complaint, Jackson and Alexander significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
“Alexander is subject to and has not paid penalties incurred for past violations of these due diligence requirements.”