Carmen Gonzalez, Tax Return Preparation Scam, New Jersey 2023

Tax Return Scam Exposed in New Jersey

A federal court has permanently barred Carmen Gonzalez from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Gonzalez consented without admitting wrongdoing, was signed by Judge Joel A. Pisano of the U.S. District Court for the District of New Jersey.

Gonzalez, who operates Carmen Tax Services in New Brunswick, New Jersey, repeatedly failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on their customers’ returns. According to the complaint, Gonzalez also falsified deductions and listed bogus dependents on her customers’ returns in order to claim the maximum EITC for them.

The Internal Revenue Service has listed return preparer fraud as one of its “Dirty Dozen” tax scams for 2011. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax fraud promoters. Information about these cases is available on the Justice Department website.

The court order requires Gonzalez to send a letter to all customers for whom she prepared a federal tax return since Jan. 1, 2005, informing them that she has agreed to the injunction and is no longer permitted to prepare tax returns for others.

The case against Carmen Gonzalez highlights the ongoing efforts of the Justice Department to combat tax return preparation scams and protect taxpayers from unscrupulous tax preparers. The public is advised to be cautious when selecting a tax preparer and to report any suspicious activity to the authorities.

Gonzalez’s consent to the civil injunction order without admitting wrongdoing does not necessarily imply guilt. However, the court’s action serves as a warning to other tax preparers who engage in similar practices.

Mandatory Facts: Defendant Carmen Gonzalez, who operates Carmen Tax Services in New Brunswick, New Jersey, was permanently barred from preparing federal tax returns for others. The civil injunction order was signed by Judge Joel A. Pisano of the U.S. District Court for the District of New Jersey. Gonzalez consented to the order without admitting wrongdoing.

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