Barring Non-Compliant EITC Return Preparers from Filing Tax Returns

An injunction permanently 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 often 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; and/or
• 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 eleven injunctions represented over $101.1 million dollars in harm to the government. 

EITC Due Diligence Injunction Results

Recent Department of Justice news releases announced injunctions against return preparers all involving EITC Due Diligence violations.

• 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. 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.

• 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)

 Past Actions:

• 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

• EITC Preparer Information on irs.gov

 

• Consequences of Filing EITC Returns Incorrectly

 

• EITC Preparer Compliance - Targeted, Tailored and Tiered
  • Reaching Out to Preparers
  • Visiting Preparers Filing Highly Questionable Returns
  • Real Time EITC Preparer Pilot
  • Auditing for Due Diligence Compliance
  • Additional Forceful Actions Taken Against Return Preparers Filing False EITC Claims

 

Last updated: 5/3/2013