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Tax Return Scammer Targeted by Feds
In a move to shut down a notorious tax return scammer, the federal government has asked a Los Angeles court to bar Elton L. Barnes Jr. from preparing tax returns for others, the Justice Department announced today.
Barnes, who has a history of tax-related crimes, pleaded guilty to aiding and assisting in the preparation of false tax returns in 2002. However, he resumed preparing returns after his release from prison in 2009, allegedly working under various names, including McNair Group, So Cal Financial Services and Anderson Investment Group.
The IRS has audited over 180 tax returns prepared by Barnes and has identified almost $2 million in false refund claims and understatements of taxes owed. In some cases, Barnes allegedly used his clients’ personal identifying information to file tax returns and deposit the refunds into his own bank account, a clear violation of federal law.
Barnes’ scheme was also riddled with fake charitable contributions and losses from imaginary home businesses. He allegedly overstated the amount of federal income tax withheld from his clients’ paychecks, claiming a larger refund. This egregious behavior has earned him a spot on the IRS’ Dirty Dozen Tax Scams for 2014.
The Tax Division has obtained injunctions against hundreds of fraudulent tax preparers in the past decade. If you believe one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Return-preparer fraud is a serious offense, and the federal government will not hesitate to take action against those who engage in it. By banning Barnes from preparing tax returns, the government is protecting innocent taxpayers from further financial harm.
Related Materials: United States v. Elton L. Barnes Jr. United States Complaint for Permanent Injunctive Relief
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Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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