|
Justice
Dept.
asks
Federal
Court to
shut
down
Detroit-area
Liberty
Tax
Service
By Tell
Us
Detroit
via US
Justice
Department
WASHINGTON
(Tell Us
Det) -
The
United
States
filed a
complaint
asking a
federal
court in
Detroit
to
permanently
bar a
Liberty
Tax
Service
franchise
owner
and his
company
from
preparing
federal
tax
returns
for
others,
the
Justice
Department
announced
today.
The
civil
complaint
against
Craig M.
Comer of
Royal
Oak,
Michigan,
and his
business,
Comer
Inc.,
alleges
that
Comer
operates
five
Liberty
Tax
Service
franchise
locations
in the
Detroit
area.
According
to the
complaint,
the
defendants
prepare
income
tax
returns
for
customers
that
fraudulently
overstate
refunds
and
claim
refundable
credits
by,
among
other
things,
claiming
false or
inflated
Schedule
C income
and
expenses,
bogus
dependents,
false
filing
statuses,
improper
education
credits
and
false
itemized
deductions.
Based on
audit
adjustments
the IRS
has made
to tax
returns
prepared
and
filed by
the
defendants
for 2008
to 2013,
the
defendants’
conduct
has cost
the U.S.
Treasury
approximately
$4.5
million
for
those
years
alone,
according
to the
suit.
The
complaint
also
alleges
that in
order to
increase
their
fees,
the
defendants
have
altered
completed
tax
returns
already
signed
by the
customers
and
forged
customers’
signatures
on
returns.
Furthermore,
the
defendants
have
added
false
information
to
internal
Liberty
Tax
Service
documents
to give
the
illusion
that the
franchises
are
properly
verifying
customer
information
when
preparing
customers’
tax
returns,
according
to the
complaint.
Return
preparer
fraud is
one of
the
Internal
Revenue
Service’s
(IRS)’s
Dirty
Dozen
Tax
Scams.
The IRS
has some
tips on
their
website
for
choosing
a tax
preparer.
In the
past
decade,
the Tax
Division
has
obtained
injunctions
against
hundreds
of
unscrupulous
tax
preparers.
Information
about
these
cases is
available
on the
Justice
Department
website.
An
alphabetical
listing
of
persons
enjoined
from
preparing
returns
and
promoting
tax
schemes
can be
found on
this
page. If
you
believe
that one
of the
enjoined
persons
or
businesses
may be
violating
an
injunction,
please
contact
the Tax
Division
with
details.
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