Herman “Eddie” Simmons, Richmond Simmons, Tax Fraud, Michigan 2023

Shut Down: Shady Tax Return Preparers in Detroit

In a major blow to tax fraud in the Motor City, a federal court in Michigan has shut down two Detroit-area tax return preparers accused of filing false and inflated deductions for charitable contributions.

On April 10, 2023, U.S. District Court for the Eastern District of Michigan entered a preliminary injunction against Herman “Eddie” Simmons, Richmond Simmons, and the business Profile Income Tax Co., doing business as Simmons Income Tax Company, enjoining Defendants from preparing federal income tax returns for others through the resolution of their case on the merits.

The injunction, issued after a hearing and taking evidence, was based on customer declarations that the defendants had engaged in a pattern of willfully claiming false or inflated deductions to understate their clients’ liabilities. The court found that “no reasonable tax preparer would proceed in such a grossly uninformed and willfully ignorant manner.”

According to the court, the defendants’ customers repeatedly stated that they had never discussed the deductions at issue with the defendants, and that they had no idea why their returns contained the reported figures. The defendants claimed that they had made “honest mistakes,” but the court rejected this contention, finding that it was not credible.

The shutdown is a major victory for the IRS, which has been warning taxpayers about unscrupulous tax return preparers as part of its Dirty Dozen series. As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.

The case is part of a larger effort by the Tax Division to combat unscrupulous tax preparers. In the past decade, the division has obtained injunctions against hundreds of unscrupulous tax preparers, and 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.

The Tax Division’s efforts are part of a broader effort to protect taxpayers from unscrupulous tax return preparers. As the 2023 tax season continues, taxpayers should remain vigilant and take steps to protect themselves from tax-related scams. By choosing a reputable tax return preparer and following the IRS’ tips on filing returns accurately, taxpayers can help to prevent tax-related crimes and keep their personal information safe.

In related news, the IRS recently warned taxpayers about unscrupulous tax return preparers and offered tips on how to accurately file returns and choose a reputable tax return preparer. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard personal information.

The shutdown of Herman “Eddie” Simmons, Richmond Simmons, and the business Profile Income Tax Co. is a significant blow to tax fraud in the Detroit area. As the 2023 tax season continues, taxpayers should remain vigilant and take steps to protect themselves from unscrupulous tax return preparers.

Mandatory Facts:

Defendant: Herman “Eddie” Simmons, Richmond Simmons, Profile Income Tax Co. (doing business as Simmons Income Tax Company)

Criminal Charges: Filing false and inflated deductions for charitable contributions

City and State: Detroit, Michigan

Exact Date: April 10, 2023

Sentence or Outcome: Preliminary injunction

Dollar Amounts: None

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