at the expense of their customers and the Treasury. Examples of misconduct by defendants, and those acting at their direction, alleged in the complaint include:
- Falsely claiming the Earned Income Tax Credit;
- Fabricating businesses and related business income and expenses;
- Claiming false education credits;
- Claiming fabricated COVID-19-related tax credits;
- Fabricating itemized deductions, including for unreimbursed employee business expenses;
- Failing to conduct the required due diligence when claiming tax credits, including the Earned Income Tax Credit; and
- Failing to identify the actual paid preparer of completed tax returns.
The Tax Division reminds taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully ( Choosing a Tax Professional and How to Choose a Tax Return Preparer ) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
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 $79,000. 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. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Justice Department’s Tax Division has obtained civil injunctions and criminal convictions 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