Gerardo Herrera, Federal Tax Return Fraud, Colorado 2016
A Colorado man and his tax preparation business have been permanently banned from preparing federal tax returns after a federal court ruled against them, the Justice Department announced today.
Gerardo Herrera and his business, El Lobo Multiservicios Professionales Inc., were found to have fraudulently reduced their customers' tax liabilities by reporting extra dependents and claiming bogus deductions.
According to the government's civil complaint, Herrera and his staff repeatedly claimed their customers' extended family members as dependents, even though they do not qualify for dependent status under federal law, and have improperly claimed deductions for personal expenses like cell phones and car insurance.
In addition, according to the complaint, audits have shown that Herrera and his workers exaggerated deductions, reported fraudulent charitable contribution deductions and claimed improper head of household filing status.
The complaint alleges that the Internal Revenue Service (IRS) audited more than 200 returns prepared by Herrera's business and found misrepresentations on more than 99 percent of them.
Return-preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2015.
The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers.
An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on the Justice Department website. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Defendant/Respondent: Gerardo Herrera, El Lobo Multiservicios Professionales Inc.
Exact Criminal Charges: Fraudulently reducing tax liabilities by reporting extra dependents and claiming bogus deductions.
City and State: Colorado
Exact Date: January 7, 2016
Sentence or Outcome: Permanently banned from preparing federal tax returns.
Key Facts
- State: Colorado
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →