A South Florida tax return preparation business has been accused of filing false tax returns for its clients, according to a lawsuit filed by the federal government.
The Justice Department announced yesterday that it has sued Marlen Monzon, her son Yanko Rodriguez, and their Miami business, Tri Stars Multiservices Corporation, seeking to bar them from preparing federal tax returns for others.
The civil injunction suit alleges that Monzon and Rodriguez claim bogus deductions and credits on customers’ federal tax returns, including fabricated claims for business expenses on customers’ tax returns even though the customers have no business.
According to the complaint, these fabricated expenses offset the customer’s wage income and improperly lower the customer’s reported taxable income, generating (or increasing) a refund, and often qualifies customers for credits to which they are not entitled.
The complaint alleges that the Internal Revenue Service has examined 498 tax returns for tax years 2008 through 2011, and found that nearly every return claimed that the customer operated a nonexistent business and reported a business loss.
This allegedly reduced the customers’ reported tax liability by an average of $7,031 per return, for a total of $3,494,336 in lost revenue.
The government is seeking an injunction to bar Monzon and Rodriguez from preparing federal tax returns for others.
Tri Stars Multiservices Corporation, Crime: Tax Fraud, State: Florida, Year: 2011
Defendant: Tri Stars Multiservices Corporation, Marlen Monzon, and Yanko Rodriguez
City and State: Miami, Florida
Exact Date: Not specified
Sentence or Outcome: Currently facing a civil injunction suit
Dollar Amounts: $43,000 in penalties assessed against Monzon in 2008, a total of $3,494,336 in lost revenue
Related Federal Cases
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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