Birmingham Tax Preparer Charged with Fabricating Tax Refunds
The United States has asked a federal court to permanently bar a Birmingham, Ala., man from preparing federal tax returns for customers, the Justice Department announced today.
According to the complaint, Douglas E. Dent fabricates large tax withholdings that result in large bogus refund claims on customers’ tax returns. Since 2008, each of the 47 federal tax returns prepared by Dent has requested a fraudulent refund, often in amounts exceeding $100,000.
The total amount of bogus refunds Dent has sought for customers exceeds $14 million. The government alleges that Dent often uses false Internal Revenue Service (IRS) Forms 1099-OID to report both fictitious interest income and tax withholdings.
Return preparer fraud and bogus refund claims based on false 1099-OID forms are identified by the IRS as two of the 2010 “Dirty Dozen” tax scams. Since 2001, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns.
The case against Douglas E. Dent is ongoing, and the court has yet to make a decision. Information about the case is available on the Justice Department website, including details on past cases involving tax return preparer fraud.
Douglas E. Dent, of Birmingham, Alabama, is accused of fabricating tax withholdings and claiming fake refunds totalling $14 million. He is facing a permanent bar from preparing federal tax returns for customers. The exact date of the crime is not specified, but the alleged activity has been ongoing since 2008.
Mandatory Facts:
Defendant: Douglas E. Dent
Criminal Charges: Fabricating tax withholdings and claiming fake refunds
City and State: Birmingham, Alabama
Exact Date: The exact date of the crime is not specified, but the alleged activity has been ongoing since 2008.
Sentence or Outcome: The case is ongoing, and the court has yet to make a decision.
Dollar Amounts: $14 million in bogus refunds sought for customers, with each refund often exceeding $100,000.
Related Federal Cases
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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