Justice Department shuts down tax return preparer, seeks to shutter another

A federal district judge in Atlanta has permanently barred Saloum A. Njie and his company, MIAAS Associates LLC, from preparing federal tax returns for others, the U.S. Department of Justice announced today.

The court also ordered the defendants to provide their customer lists to the government and to mail copies of the court order to former clients.
 
In preparing federal tax returns to submit to the Internal Revenue Service, the court determined that the defendants consistently understated their customers' true tax liabilities based upon unreasonable positions that they knew or should have known were not supported by substantial authority.
 
The defendants prepared customers' tax returns claiming either the earned income tax credit for customers who do not qualify for the credit, or overstating the credit amount to which customers are entitled, according to the Justice Department. Additionally, defendants have continued this unlawful practice despite three separate investigations by the IRS, each of which found numerous violations of federal tax law and resulted in thousands of dollars in monetary penalties.
 
Altogether, defendants' activities between 2006 and 2009 might have resulted in more than $1 million in understated federal income tax liabilities for their customers.
 
The U.S. government last week filed a lawsuit against a Chicago tax return preparer in an effort to bar him and his company from preparing federal tax returns for others, according to the Justice Department.
 
The civil injunction suit alleges that Charlie Wilson and Chicago-based business CBD Tax Service claim bogus deductions and credits on customers’ federal tax returns. Wilson allegedly included fabricated claims for charitable deductions, employee business expenses, and other deductions on tax returns that he and his business prepared since 2006.
 
From 2006 to 2009, CBD Tax Service prepared approximately 6,527 federal income tax returns for customers with an unusually high refund rate of more than 98 percent and in 2009, alone, Wilson himself prepared at least 894 tax returns with a 98 percent refund rate, according to the government complaint.
 
Related articles:

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

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.