An injunction can permanently prohibit a preparer from filing federal tax returns for others. We generally reserve this targeted action for preparers when earlier compliance efforts failed.
This process allows the Department of Justice to ask a federal court to shut down a return preparation business when we identify a history of a preparer not meeting due diligence requirements for the earned income tax credit, child tax credit, additional child tax credit, credit for other dependents, American opportunity tax credit or head of household filing status, including:
- Filing questionable claims for certain credits or head of household filing status
- Previous due diligence and other return preparer penalties
- Prior e-file warnings or suspensions
- A high percentage of clients whose claims were reversed or reduced by IRS
- Non-compliance related to preparer's personal or business tax returns
These preparers could also face criminal prosecution or additional penalties.
Cost to Government and Clients
With this process, we can stop preparers who file questionable returns that result in millions of dollars in harm to both the government and their clients. The preparers listed below have been permanently barred from preparing federal tax returns for others.
Due Diligence Injunction Results
The Tax Division of the U.S. Department of Justice announced the following injunctions against return preparers involving due diligence violations:
- Court Permanently Enjoins Miami Tax Return Preparers, Orders Them to Pay Disgorgement. The U.S. District Court for the Southern District of Florida issued a permanent injunction yesterday against Miami tax return preparer Niclas Pierre, and his tax return preparation business, Niclas Tax and Express Inc. The court also issued a permanent injunction against Elius Bessard and his tax return preparation business, Bessard Immigrations and Tax Services LLC. (Nov. 8, 2024)
- Federal Court Permanently Shuts Down Indiana Tax Preparer and Company. The civil complaint alleges that Santiago and Madison Solutions used a variety of schemes to improperly reduce their customers’ tax liabilities or to obtain tax refunds to which the customers were not entitled. The complaint alleges that Santiago repeatedly placed false or incorrect items, deductions, exemptions or statuses on customers’ tax returns without their knowledge. For example, the complaint alleges that Santiago routinely elected head of household filing status and child tax credits for customers when they were otherwise not qualified for such status or credits. The complaint also alleges that Santiago reported fictitious businesses on customers’ returns and fabricated business expenses and income to fraudulently reduce taxable income. (Oct. 29, 2024)
- Miami Tax Return Preparers and Brothers Agree to Permanent Injunction. The U.S. District Court for the Southern District of Florida issued a permanent injunction today against Miami tax return preparers and brothers, George and Luis Brito, and their businesses. The permanent injunction bars George Brito from preparing federal income tax returns, working for or having any ownership stake in any tax preparation business, assisting others (including family members) prepare tax returns or set up business as a preparer and transferring or assigning customer lists to any other person or entity. (Oct. 2, 2024).
- Florida Tax Return Preparer Agrees to Shut Down Tax Prep Business and to Pay $134,400. The court ordered the closure of Bataille’s business, Capital Financial Holdings LLC, and barred him from preparing or assisting in preparing federal income tax returns or transferring his customer lists. The court also ordered Bataille to pay $134,400 in ill-gotten gains he received from his return preparation business. Bataille agreed to both the injunction and the order to pay $134,400. (Sept. 27, 2024)
- A Florida federal court permanently barred Steven Doletzky, Michael Garno and Michael Bass, formerly doing business as Liberty Tax Service, from operating a tax return preparation business and preparing federal tax returns for others. Employees at stores owned by Doletzky, Garno and Bass prepared fraudulent claims for tax credits, including education credits and the earned income tax credit. (March 16, 2020)
- A federal court in Texas permanently barred Levett Navarro Camarena and her son, Chase Edward Camarena, from preparing federal tax returns for others, including under the name of the business Hispanic Services. The two routinely prepared federal tax returns for customers that contained false, improper, or inflated business expenses on Schedule C as well as reported Schedule C businesses that did not exist, increasing the earned income credits and causing an understatement of the client’s tax liability. (Oct. 16, 2017)
- A Louisiana federal court permanently barred Angelina Adams and her tax preparation business, Angie’s Tax Service LLC, from preparing federal tax returns for others. Their alleged schemes included fabricating Schedule Cs to secure bogus earned income tax credits and claiming unsupported education credits. (Sept. 6, 2017)
- A federal court in New York permanently barred Elias Linares, Margae Zaldivar and their businesses, Taxes La Universal Corp., Universal Taxes & Staffing Corp. and Taxes La Universal II Corp., from preparing federal tax returns for others. Linares and Zaldivar routinely prepared federal tax returns for customers that contained false or erroneous claims for education tax credits and the earned income tax credit. (July 28, 2017)
- A Michigan federal court permanently barred Syed N. Ahmed and his businesses in Michigan and Illinois from preparing federal income tax returns. The defendants' employees prepared federal income tax returns containing false information in order to illegally generate higher tax refunds or higher refundable credits for their customers. (Nov. 16, 2015)
Find more information on additional forceful actions taken against preparers filing false claims