Federal Court Shuts Down Florida Tax Preparers

A federal court in Miami, Florida, has permanently barred Sharon Angulo and Claudia Zuloaga, both of Miami, from preparing federal tax returns for others, the Justice Department announced August 9, 2012. 

According to the government complaint in the civil case, Angulo and Zuloaga help customers use Form 1099-OID to report fictitious income tax withholding. The complaint alleges that Angulo and Zuloaga's customers file federal tax returns claiming tax refunds based on the fake withholding.

Original Issue Discount

  • OID is the excess of an obligation's stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). A discount of less than ¼ of 1 percent of the stated redemption price at maturity, multiplied by the number of full years from the date of issue to maturity, is considered to be zero.
  • You must prepare a Form 1099-OID for each person who is a holder of record of the obligation if the OID includible in the holder's gross income is at least $10.


The complaint states that the defendants have prepared or assisted in the preparation of at least nineteen tax returns reporting false withholding and claiming fraudulent tax refunds totaling more than $3 million.
The court ordered Angulo and Zuloaga to pay to the US Treasury the funds they received from customers who paid them a percentage of the tax refunds received through the scheme. The court also ordered the defendants to provide the government with a list of all persons for whom they prepared federal tax returns or forms since 2008.
Related articles:

You may like these other stories...

And down the stretch they come!No, it’s not the thoroughbreds charging toward the finish line in the Kentucky Derby, but the millions of US taxpayers who have yet to file their individual income tax returns before the...
The IRS expected to receive approximately 150 million individual income tax returns this filing season – and the agency is well on its way to meeting or eclipsing that mark.The IRS noted last Thursday that, as of...
From January 31 – the opening day of the 2014 tax-filing season – until February 7, the IRS received 27.3 million income tax returns, up 2.5 percent from the 26.9 million returns it collected around the same time...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.