Tax preparer shut down for falsely claiming first-time homebuyer credits
by AccountingWEB on
A federal court has permanently barred David Santiago and his business, Santiago Investment & Consulting Inc., both based in Miami, from preparing federal tax returns for others, the Justice Department announced this week.
The court found that Santiago and his company had falsely claimed the first-time homebuyer tax credit on numerous returns they prepared. The civil injunction order, entered by U.S. District Judge James Lawrence King, requires Santiago to notify his customers of the injunction order.
According to the court's order, Santiago claimed the credit on customers' returns even though he knew they had not bought new homes. The court also found that Santiago claimed fabricated business deductions on some customers' returns and failed to keep adequate customer records or copies of the returns he prepared. A tax preparer's failure to keep adequate records can subject him to civil penalties and an injunction.
Congress enacted the credit in 2008 to strengthen the real estate market and help the economy. Homebuyers who have not owned a house in the previous three years can claim a credit of up to $8,000 against their federal income taxes if they bought a home after April 8, 2008. The credit has since been expanded to allow, under certain conditions, current homeowners to claim the credit for a purchase of a new home. But in order for a taxpayer to claim the credit a home must have actually been bought.
Last October, a federal court in Texas permanently barred a woman from preparing returns for others in a case where the Justice Department alleged abuse of the homebuyer credit and other tax law provisions.
You may like these other stories...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...
Upcoming CPE Webinars
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.