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.
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.
- Justice Department Announces Indictment, Lawsuits Targeting False Tax Credit Claims
- IRS Sends Warning about New Education Tax Credit Scam
Source: US Department of Justice