The Justice Department filed a civil injunction suit today in federal court in Trenton, New Jersey. The suit seeks to bar a Monmouth County, New Jersey, tax return preparer and his businesses from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint alleges that Thomas Donkor, doing business as VIP Biz Center LLC and VIP Tax Services, prepared federal tax returns for customers on which he claimed fraudulent deductions to purposely underreport the tax his customers owed, and claimed refunds they were not entitled to receive. Specifically, the complaint alleges that Donkor prepared returns that falsify business expenses, income, and losses, and claimed improper itemized deductions for non-deductible rent and unreimbursed business expenses for ineligible taxpayers. In addition to these fictitious and fraudulent claims, the complaint describes how Donkor violated the law by failing to obtain the customer’s signature on the return, failing to provide the customer with a copy of the return, and failing to explain the fee he charged.
According to the complaint, Donkor’s repeated understatement of tax has harmed the United States by causing an estimated revenue loss of over $2.4 million in tax year 2024. In addition to seeking an injunction against Donkor, the government has requested an order disgorging roughly $555,000 in ill-gotten gains to prevent him from profiting from his violation of the Internal Revenue laws.
Deputy Assistant Attorney General Joshua Wu of the Civil Division’s Tax Litigation Branch made the announcement.
Attorney Adam S. Domitz of the Tax Litigation Branch is handling this matter.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In addition, IRS Free File , a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $89,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page