Justice Dept Seeks to Shut Down Tax Preparers

The Justice Department announced September 7, 2012, that it has sued two Dallas tax return preparers, seeking to bar them from preparing federal tax returns for others. The civil injunction suit alleges that Ricardo Solomon and Leslie Mosley, who operate a business called Trini Tax, claimed false deductions and credits on customers' federal tax returns.

According to the government complaint, Solomon and Mosley included fabricated claims for federal fuel tax credits and for education tax credits on tax returns they prepared. The complaint alleges that Solomon and Mosley's false claims for federal fuel tax credits have appeared on at least 187 tax returns, claiming at least $700,000 for 2011 alone.
 

Fuels Eligible for Tax Credits

Types of fuels that may qualify for federal fuel tax credits include: 

  • Gasoline, including all products commonly and commercially sold as gasoline that have an octane rating of 75 or more and are suitable for use as a motor fuel. This also includes gasoline blends other than ethanol and methanol fuel as well as denatured gasoline.
  • Aviation gasoline, including all special grades of gasoline suitable for use in aviation reciprocating engines.
  • Undyed diesel fuel for use in a diesel-powered highway vehicle or train. Diesel fuel also includes transmix and diesel fuel blendstocks
  • Undyed kerosene, grades 1-K and 2-K.
  • Aviation-grade kerosene used as jet fuel.
  • Liquefied petroleum gas: propane, butane, pentane, or mixtures of those gases.
 
The complaint alleges that Solomon prepared a 2010 tax return for one customer that claimed false fuel tax credits for purported fuel purchases that would have cost the customer far more than she reported receiving in income that year.
 
Fraudulently claiming expenses in order to secure larger refundable credits, including the fuel tax credit, is one of the Internal Revenue Service's Dirty Dozen tax scams for 2012. The federal fuel tax credit is available only to taxpayers who operate farm equipment or off-highway business vehicles.
 
The complaint further alleges that Solomon and Mosley repeatedly prepared tax returns that falsely claimed their customers were entitled to an education tax credit, although they did not attend an accredited post-secondary educational institution at any point during the tax year.
 
Related articles:
 
Source: US Department of Justice 

You may like these other stories...

Senate Takes Different Approach from House for Highway and Bridge FundEarlier this week, according to a New York Times article, the Senate agreed to fill the coffers of the fund that pays for highway and bridge repairs with...
There it stands, your client's 100-year-old, rickety, vermin-infested barn or former hotel or whatever the darn thing once was. And she's considering what to do with it. There are two words that can help her decide...
It's not a reality—yet—but accounting software is poised to eliminate accountants. We are at a tipping point for many similar professions: online education replacing professors, legal software replacing...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.