Lincoln, Neb. – In a major crackdown on tax fraud, a federal court has permanently shut down a Lexington, Neb., tax preparer, Donald R. Ondrak, and his company, Don Ondrak P.C., from preparing tax returns for others.
The government complaint in the civil case alleged that Ondrak prepared federal income tax returns for customers that unlawfully understate income and employment tax liabilities by under-reporting income, overstating expenses and claiming improper deductions for non-deductible personal expenses.
The complaint said that Ondrak helped clients use sham entities and bogus transactions in order to fraudulently understate their tax liabilities. According to the complaint, the Internal Revenue Service examined approximately 400 returns that Ondrak prepared and found that a significant number of them understated the customer’s tax liability. The complaint said the tax loss from Ondrak’s alleged misconduct between 2004 and 2007 was estimated to be in the tens of millions of dollars.
Ondrak agreed to the injunction order, effectively putting an end to his tax preparation business. The permanent injunction bars both Ondrak and his company from preparing tax returns for others.
This case highlights the ongoing efforts of the Tax Division to combat tax fraud and protect taxpayers from unscrupulous tax preparers. In the past decade, the Tax Division has obtained more than 460 injunctions against tax fraud promoters and tax return preparers.
The Internal Revenue Service (IRS) is responsible for enforcing tax laws and protecting taxpayers from tax-related crimes. The IRS has been working closely with the Tax Division to identify and prosecute tax preparers who engage in fraudulent activities.
For more information on this and other tax-related cases, visit the Justice Department’s Web Site.
Related Federal Cases
- Key West Tax Man Gets 18 Months for Fraud · Florida
- Donald Smith, $1M Fraud, Pittsburgh PA, 2023 · Pennsylvania
- Garrett Elder, Wire Fraud Scheme, Anchorage AK, 2016-2022 · New Jersey
- Jared Wilkes Post, Elder Abuse Bank Fraud, Fairbanks AK, 2021 · Alaska
- Willie Mitchell, Bank Fraud, Phoenix AZ, 2023 · Texas
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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