Tax Cheat SWMc Services Shut Down

HOUMA, LA – A Louisiana accountant is out of the tax prep business after a federal court slapped him with an injunction, effectively shutting down his firm, SWMc Services. Steven W. McCann, 34, of Dallas, operating out of the Houma area, was caught claiming bogus expense deductions on the federal tax returns of his clients – specifically, mariners working at sea.

The feds allege McCann systematically filed nearly 1,000 fraudulent returns, falsely claiming employee expenses for mariners who hadn’t actually paid those costs out of pocket. Instead of legitimate reimbursements, McCann was claiming deductions for meals and other incidentals *already* covered by the mariners’ employers. It’s a classic scheme: inflate deductions, pad refunds, and pocket a cut – or, in this case, reap steady fees from clients hoping for a bigger tax return.

This isn’t a new hustle. Federal prosecutors point to a similar case from 2007, where another CPA, Martin A. Kapp, was barred from promoting the same illegal “mariner’s tax deduction” scheme in Los Angeles. The feds are clearly tired of seeing the same grift resurface. Assistant Attorney General Nathan J. Hochman stated the IRS and federal prosecutors are dedicated to stopping preparers pushing these frivolous deductions.

The civil injunction order means McCann can no longer prepare federal income tax returns for anyone. Violating the order could lead to civil contempt of court, with potential jail time and hefty fines. While this isn’t a criminal conviction, it’s a significant blow to McCann’s business and a clear message to other tax preparers thinking about skirting the law.

The crackdown on fraudulent tax preparers is ongoing. Since 2001, federal prosecutors have secured injunctions against over 365 individuals promoting tax fraud schemes. The feds aren’t just going after the big fish; they’re systematically dismantling the network of shady operators preying on unsuspecting taxpayers. A full list of these cases is available on the federal prosecutor’s website.

Trial attorney Grayson Hoffman and IRS revenue agent Phil Rampey were instrumental in securing this injunction, according to Hochman. The case serves as a warning: when it comes to taxes, the feds are watching, and they’re ready to shut down anyone trying to game the system. This isn’t about complex accounting; it’s about simple theft, disguised as tax preparation.