Cynthia Hawk, a tax return preparer who operates Gain Tax Services in Indianapolis, Indiana, is at the center of a federal investigation into tax return fraud. According to a complaint filed by the Justice Department, Hawk allegedly falsified her customers’ incomes to claim the maximum earned income tax credit (EITC) on their tax returns.
The EITC is a refundable federal income tax credit available to certain low to moderate income working individuals and families. In 2010, the maximum credit was $5,666. Hawk allegedly fabricated businesses and reported fake business income on her customers’ tax returns to reach the EITC ‘sweet spot’.
The complaint alleges that the Internal Revenue Service (IRS) determined that Hawk failed to comply with due-diligence requirements when claiming the EITC for her customers. The IRS penalized Hawk in 2011 for her failures. When the IRS performed a follow-up investigation in 2012, it again found ongoing failures and fraudulent claims by Hawk.
Hawk, who previously prepared tax returns in Atlanta, prepared at least 1,501 returns from 2009 through 2012, with unusually high refund rates ranging from 96 to 99 percent during those years. The complaint also alleges that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses.
The Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department’s Tax Division website.
Cynthia Hawk’s alleged crimes are a serious breach of public trust. Tax return preparers have a responsibility to accurately represent their clients’ income and expenses. By falsifying her customers’ incomes, Hawk put her clients at risk of financial penalties and even audits.
The investigation into Cynthia Hawk’s alleged tax return fraud is ongoing. The public is encouraged to report any suspected cases of tax return fraud to the IRS.
Defendant: Cynthia E. Hawk
Criminal Charge: Falsifying customers’ incomes to claim maximum earned income tax credit
City and State: Indianapolis, Indiana
Date: Ongoing investigation
Sentence/Outcome: Investigation ongoing
Dollar Amounts: $5,666 (maximum EITC in 2010)
Related Materials: United States v. Cynthia E. Hawk, etc.
Related Federal Cases
- Jack Weichman, Bank Fraud and Tax Evasion, Indiana 2023 · Illinois
- Peter Zavell, Filed False Tax Return, Florence FL, 2000 · Florida
- Cheryl Diane Brooks, Mail Fraud and Tax Fraud, Pennsylvania 2013 · Washington
- Mark Warne, Bank Fraud, Indiana 2023 · Indiana
- Jeffrey Wilson, Biofuel Fraud, Indiana 2024 · Indiana
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime