Tax Preparer Shut Down: Cynthia Hawk Banned from Preparing Federal Tax Returns
Yesterday, a federal district judge in Indianapolis permanently barred Cynthia Hawk, who operates Gain Tax Services, from preparing federal income tax returns for others. Hawk consented to the entry of this injunction.
The government’s complaint, alleging that Hawk prepared at least 1,501 returns from 2009 through 2012, stated that returns Hawk prepared claimed refunds at an unusually high percentage, ranging from 96 to 99 percent during these years. The government alleged that Hawk failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns.
According to the complaint, when the IRS performed a follow-up investigation in 2012, as it routinely does, it again found ongoing failures and fraudulent claims by Hawk. Hawk was previously penalized by the Internal Revenue Service (IRS) in 2011 for failing to comply with these due-diligence requirements.
The complaint also alleged that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses. Hawk allegedly falsified customers’ income in order to claim the maximum EITC for them.
The complaint stated that Hawk’s repeated conduct of preparing returns that understated her customers’ liabilities based on bogus credits or fabricated income or deductions was sufficient for the court to prohibit her from preparing federal tax returns.
Defendant: Cynthia E. Hawk, Tax Preparer
Criminal Charges: Preparing federal income tax returns without complying with due-diligence requirements and making false claims on tax returns.
City and State: Indianapolis, Indiana
Exact Date: Yesterday (presumably 2023)
Sentence or Outcome: Permanently barred from preparing federal income tax returns for others.
Dollar Amounts: Not specified
Related Federal Cases
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- Andrew J. Franz, Embezzlement, Mail Fraud, Securities Fraud, Income Tax Evasion, Ohio 2023 · Indiana
- James Burkhart, Mail Fraud, Wire Fraud, Health Care Fraud, Indiana 2009 · Indiana
- Monique Bowling, iPad Theft and Identity Fraud, Indiana 2023 · Indiana
- Jack Weichman, Bank Fraud, Indiana 2023 · Indiana
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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