The U.S. Department of Justice filed a
complaint Wednesday seeking to bar several Michigan tax return preparers from
owning or operating a tax return preparation business and preparing tax returns
for others.
The civil complaint against J&A Tax
Services LLC, doing business as Equitax; Anne Heibeck aka Ann Marie Dziergas;
Crystal Patrick; Debra Washington; Kianna Dancy; Sade Cooper and Tasha
Washington was filed in the U.S. District Court for the Eastern District of
Michigan.
The complaint alleges that the defendants, using a variety of schemes, knowingly took unreasonable or incorrect positions on tax returns they prepared that resulted in understating their customers’ tax liabilities or overstating the amount of refunds their customers were entitled to receive. The complaint alleges that the defendants prepared customers’ returns that included various false or fabricated deductions and credits, including falsely reporting business income or loss on Form 1040 Schedule C, either by reporting fictitious sole proprietorships or by manipulating authentic sole proprietorship income and expenses, fabricated child and dependent care expenses, fictitious credits for education expenses and false COVID-19 sick and family leave credits.
The government further alleges that in 2022 alone, the defendants filed 865 returns, with at least 98% of the returns claiming a refund. By repeatedly reducing their customers’ tax liabilities or inflating their customers’ refunds, the complaint alleges that defendants harmed the United States through, among other things, the significant loss in tax revenue, estimated at over $2 million for the 2021 tax year alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website (www.irs.gov/tax-professionals/choosing-a-tax-professional) for choosing a tax return preparer and has launched a free directory of federal tax preparers at https://irs.treasury.gov/rpo/rpo.jsf. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/tax-division-news. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found at www.justice.gov/tax/program-shut-down-schemes-and-scams. For those who believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details at TAX.MAIL@usdoj.gov or Phone: 202-514-2901 .
