Gerald Vito, Gerald Vito, Tax Return Preparer Fraud, Florida 2018

Two Miami-area tax return preparers, Gerald Vito and James Eleby, have been accused of perpetrating a massive tax return scam, with Gerald Vito LLC, dba Income Tax Services, at the helm.

According to a complaint filed in the U.S. District Court for the Southern District of Florida, Miami Division, on behalf of the United States, Gerald Vito and his company allegedly prepared over 1,900 federal income tax returns during the 2018 and 2019 calendar years that significantly understated their customers’ tax liabilities.

The complaint alleges that in reporting their customers’ itemized deductions, defendants fabricated or inflated charitable deductions, medical expenses, and employee business expenses. This allows a fraudulent tax preparer to underreport the customer’s taxable income and reduce their reported tax liability, which in many cases leads to bogus and fraudulent refund claims.

The complaint further alleges that defendants significantly understated their customers’ tax liabilities by reporting false or inflated business losses. As a result, the complaint alleges, defendants have likely cost the United States millions of dollars in lost tax revenue.

Defendant Gerald Vito and his company, Gerald Vito LLC dba Income Tax Services, face allegations of preparing false or inflated tax returns, which is a serious crime. The IRS considers return preparer fraud one of the Dirty Dozen Tax Scams and advises taxpayers to remain vigilant when seeking a return preparer.

The IRS offers free online tax preparation and filing options through IRS Free File for individuals with adjusted gross income under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.

The United States has filed a complaint in the U.S. District Court for the Southern District of Florida, Miami Division, seeking to bar Gerald Vito, James Eleby, and Gerald Vito LLC dba Income Tax Services from preparing federal income tax returns for others.

The civil complaint alleges that defendants have harmed their customers, who could potentially be required to pay tax deficiencies, interests, and penalties as a result of defendants’ conduct.

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