Texas woman barred from preparing tax returns

A federal district court in Texas has permanently enjoined Ludivina Salinas of Mission, Texas, from preparing federal income tax returns for others, the Justice Department announced today. According to a government complaint filed in the case, Salinas claimed improper credits on customers' federal income tax returns. Salinas agreed to the injunction without admitting the allegations in the complaint.

 

The complaint alleges that Salinas claimed Earned Income Tax Credits (EITCs) on customers' tax returns without conducting or documenting the investigation all return preparers must conduct under Treasury regulations before claiming the EITC. According to the government filing, Salinas's firm, EZ Tax Services, also knowingly helped a customer claim a First-Time Homebuyer credit even though the customer had not purchased a home. The credit is available only to taxpayers who have purchased their first home.

 

The complaint also alleges that Salinas knowingly allowed customers to evade self-employment taxes by reporting self-employment income as wages or other income. Salinas allegedly asked her customers to sign form letters acknowledging that the client would not be paying self-employment taxes on their income from self-employment.

 

The suit alleges that Salinas prepared over 1,100 federal income tax returns in 2009 and claimed refunds on 99 percent of them.

 

In the past decade, the Justice Department has obtained injunctions against more than 425 tax preparers and tax fraud promoters. Information about these cases is available on the Justice Department Web site.

You may like these other stories...

Renaissance avoided more than $6 billion tax, report saysThe Senate Permanent Subcommittee on Investigations said on Monday that a Renaissance Technologies LLC hedge fund’s investors probably avoided more than $6...
A new Gallup survey found that 58 percent of smokers in the United States see increased state and federal taxes on cigarettes as an act of unjust discrimination, while 39 percent believe the tax hikes are justified.The...
Liberal groups object to bill barring taxes on Internet accessThe Internet Tax Freedom Act hasn’t been a controversial bill. In fact, it’s so popular that senators are seeking to pair it up with a far more...

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
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.