A federal court in Ohio has permanently shut down a tax preparer, Michael Craig, both individually and doing business as Craig’s Tax Service, after he was accused of preparing false and fraudulent tax returns for hundreds of clients.
According to court documents, Craig’s tax returns made false and fraudulent claims, including reporting losses for fictitious Schedule C businesses, claiming costs of goods sold for types of businesses that cannot legitimately claim COGS and without supporting documentation, inventing or inflating expenses for otherwise legitimate Schedule C businesses, and taking deductions for both cash and non-cash charitable deductions that are either exaggerated or completely fabricated.
The court’s order requires Craig to send notice of the injunction to each person for whom he prepared federal tax returns or refund claims after January 1, 2022. The IRS estimated a tax loss of more than $3.1 million in 2022 alone from tax returns prepared by Craig.
The Justice Tax Division made the announcement, saying that taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Tax Division’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.
Michael Craig, both individually and doing business as Craig’s Tax Service, consented to the entry of the injunction. The court’s order requires Craig to send notice of the injunction to each person for whom he prepared federal tax returns or refund claims after January 1, 2022.
Defendant: Michael Craig
Criminal Charges: Preparing false and fraudulent tax returns
City and State: Columbus, Ohio
Date: Permanent injunction entered (no specific date given)
Sentence or Outcome: Permanently enjoined from preparing tax returns
Tax Loss: $3.1 million in 2022 alone
Key Facts
- State: Ohio
- Category: White Collar Crime|Financial Crimes
- Source: DOJ Press Release â†â€â€
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