A federal court in South Florida permanently prohibited a tax preparer in the Miami area from continuing their practice and ordered them to repay $571,739.47 in profits obtained through fraudulent tax returns.
The decision was announced on Wednesday by the U.S. Department of Justice, after a federal judge issued the order on October 26.
The preparer, identified by the initials A. S.-H., will not be able to prepare tax returns for third parties, advise on their preparation, work in companies in the sector, or earn income through investments or services related to that activity.
According to authorities, the man used tax identification numbers from other preparers (PTIN) to file federal tax returns, thereby concealing his identity as the person responsible for the documents.
The court also determined that it included fraudulent deductions and tax credits to improperly reduce the taxes owed by its clients.
Among the irregularities were alleged unreimbursed labor expenses, tax credits for fuel and residential clean energy, as well as deductions related to savings accounts for medical expenses.
Irregularities in 59% of the declarations
One of the most significant findings was that 59% of the prepared statements included requests for deductions for unreimbursed work expenses, an extraordinarily high proportion compared to the national frequency of that tax concept.
Based on the evidence and the income generated by the business, the court calculated that the preparer was required to pay the federal government $571,739.47 in profits deemed illegal.
The amount corresponds to a civil measure for the return of undue benefits, not to a criminal fine or direct compensation for the affected taxpayers.
How to avoid problems with a tax preparer?
The Internal Revenue Service (IRS) recommends verifying that the preparer has a valid PTIN, signs the return, and provides a copy to the client.
It also advises to be wary of those who promise exaggerated refunds, include deductions without supporting documentation, or refuse to identify themselves as responsible for the declaration.
Taxpayers can verify the credentials of certain professionals through the IRS free directory.
The agency warns that each taxpayer remains legally responsible for the information submitted in their declaration, even when they have paid someone else to prepare it.
Those who suspect that their preparer included false information can file a report with the IRS.
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