Salt Lake City federal court bars CPA from preparing tax returns for others

A federal court in Salt Lake City has permanently barred Dick Jenkins, a CPA from Heber City, Utah, from preparing tax returns for others, the Justice Department announced last week. U.S. District Judge Dale A. Kimball entered the civil injunction order, finding that Jenkins requested more than $393 million in fraudulent income tax refunds for customers using "a tax fraud scheme that involves filing fraudulent federal income tax returns and other frivolous documents with the IRS on behalf of his customers." Judge Kimball also said, "[g]iven the sheer brazenness of Jenkins's conduct, he is essentially stealing (and attempting to steal) from the U.S. Treasury."

 
The court found that Jenkins requested at least 20 fraudulent refunds using his tax scheme, which is based on the frivolous contention that secret accounts exist that can be accessed to pay these bogus refund claims. For example, court papers filed in the case alleged that Jenkins requested a single $210 million dollar fraudulent refund for one customer, and a $402,920 bogus refund for himself. At least $294,292 in fraudulent refunds were actually issued to Jenkins's customers. The court permanently barred Jenkins from preparing returns and providing any other tax-related services because "Jenkins's conduct results in irreparable harm to the United States."
 
On March 8, 2010, a Los Angeles court permanently shut down tax preparer Nyla McIntyre and her business, Approved Financial Services Inc., for using the same fraudulent scheme to claim over $23 million in bogus refunds for customers. On Jan. 4, 2010, an Idaho court shut down tax preparer Penny Lea Jones for using the scheme to claim $93 million in bogus refunds. And on Sept. 9, 2009, a Sacramento, Calif., court found that preparer Teresa Marty had been using the same scheme to generate bogus refunds for her customers, and permanently barred her from preparing tax returns for others.
 
In the past decade, the Justice Department's Tax Division has obtained more than 465 injunctions against tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department's Web site.  

 

You may like these other stories...

Ernst & Young 2013 audit deficiency rate 49%, regulators sayMichael Rapoport of the Wall Street Journal reported on Thursday that the Public Company Accounting Oversight Board (PCAOB) found deficiencies in 28 of the...
Some of your clients may get away to business conventions from time to time. It gives them a chance to rub shoulders with colleagues, catch up on the latest developments, and fine-tune their skills. And, when the meetings or...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.