Smart Ajayi, d/b/a Harplett Marketing LLC., Topps Tax Services and Smart Tax Services, and JoAnn Villarreal, both of Grand Prairie, Texas, are no longer allowed to prepare tax returns for others after a federal court issued a permanent injunction against them.
A complaint filed in the U.S. District Court for the Northern District of Texas alleges that Ajayi and Villarreal repeatedly understated their customers’ tax liabilities by fabricating noncash charitable deductions and creating false Schedules C with inflated or fraudulent business losses, to generate tax refunds.
According to the complaint, Ajayi prepared a return on which he falsely reported that a customer with adjusted gross income of $34,027 made $19,759 in noncash charitable contributions. The government alleges that, over the course of years 2016 through 2018, Ajayi and Villarreal each filed hundreds of returns, and that by repeatedly understating their customers’ tax liabilities, Ajayi and Villarreal have caused the United States to lose substantial tax revenue.
“Particularly during this time of year, when honest taxpayers are filing their returns, we want the public to know that the Justice Department will pursue those who would abuse our nation’s tax laws,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams, and taxpayers seeking a return preparer should remain vigilant.
The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
Ajayi and Villarreal consented to the relief and will no longer be able to own or operate a tax return preparation business. This permanent injunction aims to protect honest taxpayers from falling victim to these types of scams.
Related Federal Cases
- James Pavlounis, Social Security Administration Fraud and Tax Evasi… · Texas
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Texas
- Karen McGinnis, Tax Theft, Mountain Top PA, 2023-2025 · Pennsylvania
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Florida
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · New Mexico
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News