Dexter Bataille, Tax Return Fraud, Florida 2023

Broward County, Florida – In a shocking case of tax return fraud, Dexter Bataille, the owner of Capital Financial Holdings LLC, has been accused of preparing hundreds of federal income tax returns that intentionally understated customers’ tax liabilities and overstated the refunds to which they were entitled.

The United States government filed a civil injunction suit in the U.S. District Court for the Southern District of Florida, seeking to permanently bar Bataille and his business from preparing federal income tax returns for others. The complaint also demands that Bataille disgorge his ill-gotten gains earned by preparing fraudulent tax returns.

According to the complaint, Bataille prepared hundreds of federal income tax returns from 2015 through 2023 that intentionally understated customers’ tax liabilities and overstated the refunds to which they were entitled. The complaint describes the various schemes Bataille allegedly used to, among other things, fraudulently increase customers claims for Earned Income Tax Credits and Additional Child Tax Credits by manipulating customers’ taxable income in fabricating household help income, misreporting their filing statuses or claiming false business income and losses.

The alleged, systematic fraudulent manipulation of customers’ tax liabilities and refund claims has caused a significant loss in federal tax revenue, estimated to be over $1.5 million for tax year 2021 alone.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement, stating that taxpayers should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Taxpayers are advised to be cautious when choosing a tax return preparer and to research their credentials before entrusting them with their tax information. The IRS offers a free directory of federal tax preparers and guidance on the qualifications that taxpayers should seek from their return preparer.

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