Antonio Chappell, Tax Fraud, North Carolina 2019

WASHINGTON – As tax filing season begins, the Department of Justice warns taxpayers to beware of unscrupulous tax return preparers. The Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices.

While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund or reduce their liability or to increase business and preparation fees. But, under the law, taxpayers are responsible for what is reported on their returns. When the IRS uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.

“Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “The Justice Department is committed to working with our partners at the Internal Revenue Service to protect the law-abiding American public and the treasury by stopping this fraud.”

Every year, the Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, files dozens of civil actions throughout the United States seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the Department of Justice and U.S. Attorney’s offices pursue criminal prosecutions of tax return preparers.

In 2019, the Justice Department has already obtained several injunctions barring individuals from filing returns for others, and filed actions against numerous others:

On Jan. 4, 2019, a federal court in Indianapolis, Indiana, permanently enjoined Antonio Chappell and G & A Tax Service LLC, from preparing federal tax returns for others. The court noted that the defendants had prepared tax returns with a wide range of scams, including falsifying reported income or losses to wrongfully increase or claim the Earned Income Tax Credit, fabricating education expenses to obtain the American Opportunity Credit for certain educational expenses; misrepresenting a taxpayer’s filing status; and reporting non-qualifying dependents to take advantage of the Additional Child Tax Credit.

Defendant: Antonio Chappell and G & A Tax Service LLC

Criminal Charges: Permanent injunction from preparing federal tax returns for others

City and State: Indianapolis, Indiana

Date: January 4, 2019

Sentence: Permanent injunction

TITLE FORMAT: Antonio Chappell, Tax Fraud, North Carolina 2019

Source: https://www.justice.gov/usao-ednc/pr/justice-department-warns-taxpayers-avoid-unscrupulous-tax-return-preparers