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Tax Preparer Busted for Faking Refunds
LOS ANGELES – Yonny Torres, owner of Yonny’s Income Tax in downtown Los Angeles, has been permanently barred from preparing federal tax returns after a federal judge found him guilty of engaging in ‘dishonest conduct’.
According to a recent court order, Torres prepared federal income tax returns that contained false information to increase clients’ earned income credit (EIC) and inflate their tax refunds. The scheme, which lasted over multiple years, accumulated losses to the government estimated as high as $6.5 million.
U.S. District Judge Stephen V. Wilson issued the permanent injunction along with a default judgment in the lawsuit filed against Torres on December 10, 2012. The civil injunction was filed last Thursday.
Torres was previously assessed a $52,000 penalty for failing to perform due diligence on clients’ tax returns in 2020.
The scheme, which spanned thousands of instances of noncompliance, had a significant impact on the government’s finances.
Yonny Torres and his business, Yonny’s Income Tax, are now restricted from preparing federal tax returns, a penalty that could have long-lasting effects on their operations.
The court order serves as a warning to other tax preparers who engage in similar schemes, emphasizing the importance of honesty and integrity in the tax preparation industry.
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Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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