Additional Forceful Actions Taken Against Return Preparers Committing EITC Fraud

We continue to take forceful actions against return preparers who file fraudulent EITC claims that do not fit into our streamlined injunction process. The following are samples of actions taken that do not fit into our streamlined process:

• Federal Court Permanently Bars Milagros Espinal of Hialeah, Florida from Preparing Tax Returns For Others (February 18, 2011)

• Federal Court Permanently Bars Jody S. Ball of Bryson City, North Carolina doing business as The Tax Lady Inc. and Jody Ball Accounting from Preparing Tax Returns For Others (February 10, 2011)

• Justice Department Announces Indictment and Six Lawsuits Targeting False claims (February 9, 2011) Two of the lawsuits involved fraudulent first-time homebuyer credits and the others involved the earned-income tax credit. The United States filed lawsuits against the following alleging fraudulent EITC claims:
  • Delois Warren of Greensboro, Alabama and her business Branjalo Tax Service
  • Christopher Helton and Marcia Johnson of the Houston, Texas area doing business as M.C. Tax Service, M.C. Tax Interprise and M.J. Tax Service.

• Justice Department files Six  Lawsuits to Enjoin Preparation of Fraudulent Federal Income Tax Returns  (January 7, 2010 ) United States filed lawsuits against the following:
  • Michael Brier, Jeffrey Sroufe, Esther Santiago, Maria Caroline Halog, Criselyn Rivera, Nitza Benitez, Carmen Miranda, Refunds Now, Inc., RNTS (a/k/a Refunds Now Tax Service, Inc.), FTIRS, Inc., POTIRS, Inc. and IHIRS, Inc. in the District of Rhode Island.
  • Harold K. Solomon, individually and d/b/a Solomon Service in the Eastern District of Michigan.
  • Erin Pryor, individually and d/b/a EP Express Tax Service in the Southern District of Ohio.
  •  Matoi Rimes, individually, and d/b/a Rimes Accounting Service in the Northern District of Illinois.  
  • Sidney Dove, individually and d/b/a Sid's Tax in the Northern District of Illinois.
  • Natalie Bradford, individually and d/b/a K & N Tax Pros, Inc., and Kristine Burkland-Valdez (a/k/a Kristine Valdez), individually and d/b/a K & N Tax Pros, Inc. and Tax Pros, Inc. in the Northern District of Illinois.

• Shreve Port Times reported Kenya Rugley of Longansport, Louisiana admitted to altering wages and falsifying earned income and first time homebuyer credits on tax returns and committing identity fraud. She will serve 42 months in prison and the court ordered her to pay restitution.  Read the news release about the arrest here (January 18, 2008).

Additional Resources Links (click on any topic listed below for additional information on the subject):

• EITC Preparer Information on irs.gov
• Consequences of Filing EITC Returns Incorrectly
• EITC Preparer Compliance - Targeted, Tailored and Tiered
• Reaching out to New and Experienced Preparers
• Visiting Preparers Filing Highly Questionable Returns
• Auditing for Due Diligence Compliance
• Barring Non-Compliant EITC Preparers from Filing Tax Returns
 

Last Revised: 10/12/2011