Barring Non-Compliant EITC Return Preparers from Filing Tax Returns
An injunction prohibits a preparer from filing federal tax returns. We generally reserve this targeted treatment for cases when earlier compliance efforts failed.
We use the injunction process to stop preparers who continue to fail to meet their EITC due diligence requirements. This allows the Department of Justice to more quickly shut down preparers when we identify a history of problems. We can sometimes obtain an injunction in 12 months or less.
We pursue injunctions against preparers with a history of not meeting their EITC due diligence requirements, including:
- Previous due diligence and other return preparer penalties
- Prior e-file warnings or suspensions
- A high percentage of clients with reversed or reduced EITC claims
- Questionable EITC and other refundable credit claims
- Non-compliance related to personal or business tax returns
These preparers could also face criminal prosecution and/or additional penalties.
Cost to Government and Taxpayers
With this process, we can shut down return preparers who are costing the government and taxpayers a great deal of money in EITC overclaims. The preparers listed below received an injunction barring them permanently from preparing federal tax returns or barring them from preparing improper federal tax returns. These injunctions represented over $105 million dollars in harm to the government and taxpayers.
EITC Due Diligence Injunction Results
Recent Department of Justice news releases announced injunctions against return preparers all involving EITC Due Diligence violations.
- A federal district judge in Indianapolis permanently barred Cynthia Hawk, who operates Gain Tax Services, from preparing federal income tax returns for others. The government's complaint alleged that Hawk prepared at least 1,501 returns from 2009 through 2012, and that returns Hawk prepared claimed refunds at an unusually high percentage, ranging from 96 to 99 percent during these years. The government alleged that Hawk failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns. (July 31, 2013) Read more about the Hawk injunction here.
- A federal court permanently barred Crystal Ireland, of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit. Ireland failed to comply with due diligence requirements imposed by federal law on tax preparers who claim the earned income credit on customers’ returns. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers’ tax returns in order to claim the maximum credit for them. (March 14, 2013) Read more about the Ireland injunction here.
- Federal court enjoined Torrey Burden and any other person or entity working in concert with Burden to neither (1) prepare, file, or assist the preparation or filing of a federal tax return for another person or entity nor (2) provide for compensation tax advice or a tax service, including tax consulting or representing a person in a matter before the Internal Revenue Service. (April 16, 2013) Read more of the Burden injunction on the Department of Justice website.
- Federal court permanently barred Yonny Torres, who does business under the name Yonny's Income Tax in downtown Los Angeles, from preparing federal tax returns. Torres received the;civil injunction, for engaging in "dishonest conduct" when preparing federal income tax returns that contained false information that increased his clients' earned income credit (EIC) so their tax refunds would be fraudulently inflated. (April 23, 2013)
- Federal court permanently bars Lakeisha Pearson of Birmingham, Alabama from preparing federal tax returns for others. Pearson received the injunction for continually preparing federal tax returns she knew or should have known were not eligible to claim EITC and for not meeting her EITC due diligence requirements. Pearson operated under these business names: LGS Tax Service, PositiveEndeavors LLC, and AGA Tax Service. (January 27, 2012).
- Federal court permanently barred Carmen Gonzalez from preparing federal tax returns for others. Gonzalez consented without admitting wrongdoing to the civil injunction order. Gonzalez, of Allentown, PA. formerly owned and operated Carmen Tax Services in New Brunswick, N.J.(December 15, 2011)
- Federal court permanently barred Luvander Hollaway from preparing federal tax returns for others. Hollaway is a resident of Newark, N.J (October 17, 2011)
- Federal court permanently barred Cecil A. Collier of Georgia from preparing federal tax returns for others. Collier worked under the trade name Cairo Fast Tax. (July 7, 2011)
- Federal Court Permanently Bars Endia Delores Nipper, Jessie Mackie and their business, TDNS Tax Service located in Augusta, GA from preparing federal income tax returns for others and from operating their tax preparation business. (May 27, 2011)
- Federal Court Permanently Bars Sony Ducasse of Greenacres, Florida from Preparing Tax Returns For Others (January 12, 2011)
- Federal Court Bars Maritza Villanueva of Irving, Texas from Preparing Tax Returns (December 14, 2010)
- Federal Court in Atlanta Permanently Bars Saloum A. Njie and his company, MIAAS Associates LLC from Preparing Tax Returns for Others (August 24, 2010)
- Federal Court Bars Ludivina Salinas of Mission, Texas from Preparing Tax Returns (October 6, 2009)
Find more information on additional forceful actions taken against preparers filing false claims
Additional Resources Links
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Page Last Reviewed or Updated: 18-Nov-2013