Detroit tax preparer accused of falsifying client income to maximize Earned Income Tax Credits

The United States has sued Crystal Ireland and her business, Master Mind Preparation, to bar them from preparing tax returns for others.   According to the government complaint in the civil injunction suit, Ireland, who resides in Detroit, allegedly fails to comply with due-diligence requirements imposed by federal law on tax return preparers who claim the earned-income tax credit (EITC) on their customers’ tax returns.   The suit also alleges that Ireland falsified her customers’ income in order to claim the maximum EITC for them.
 
The EITC is a refundable tax credit available to certain low-income individuals.   Due to the method used to calculate the EITC, individuals with higher annual incomes may be entitled to larger credits, up to a certain point.   According to the complaint, Ireland fabricated businesses and reported fake business income on her customers’ returns to obtain larger credit amounts.
 
The complaint alleges that the Internal Revenue Service (IRS) previously penalized Ireland for failing to comply with the due-diligence requirements, yet a follow-up investigation revealed continuing failures and fraudulent claims.   The complaint also alleges that, of the returns prepared by Ireland and claiming the EITC for tax years 2007 through 2009 that the IRS examined, the IRS reduced or disallowed the EITC claim on 93 percent of those returns.
 
Source: U.S. Department of Justice

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.