Victor M. Crown, a Chicago man, has been sued by the federal government for allegedly promoting two tax fraud schemes and preparing false federal tax returns for others, according to a complaint filed in court.
The complaint, which was announced by the Justice Department, alleges that Crown, individually and through his businesses Crown and Franklin Accounting and Refunds, Crown-Franklin Accounting Inc., Accurate Accounting PV, and Lourdes Theodossis Estate, has been claiming that his customers can receive false tax credits and losses based on their employment with the city of Chicago or their awards in the Shakman class-action case.
According to the complaint, Crown prepares federal income tax returns and other documents that claim false amounts of income tax withheld from his customers’ earnings. The government contends that Crown asserts that his customers can claim credit for false amounts of tax withheld based on his contention that the city of Chicago incorrectly calculated the income taxes it withheld from its employees’ wages.
The complaint also alleges that Crown prepares customers’ income tax returns and other documents that claim bogus net operating losses. For example, Crown allegedly prepared a return for a Shakman claimant who sought a $100,000 award, but only received $12,500. According to the complaint, Crown falsely claimed the customer was entitled to an $87,500 net operating loss on the customer’s amended tax returns.
The complaint alleges that Crown’s scheme lacks merit because nothing in the Internal Revenue Code permits a taxpayer to deduct the amount of a denied discrimination claim as a net operating loss. According to the complaint, Crown’s frivolous claims have resulted in fraudulently understated tax liabilities on his customers’ federal income tax returns.
The government is seeking a permanent injunction to stop Crown from promoting these alleged tax schemes and preparing false federal tax returns. If convicted, Crown could face significant fines and penalties.
The IRS has named return preparer fraud as one of the Dirty Dozen Tax Scams for 2014. The agency has tips on its website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers.
RELATED: Health Scammers Targeting NYers in Enrollment Fraud Spree
RELATED: Ohio Siblings Scammed Out of $1M in Crypto Scheme
Related Federal Cases
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime