UNION CITY, GA – Dantavious Jackson, 39, a Union City truck driver, is staring down a potential 20-year prison sentence after pleading guilty to a brazen mail fraud scheme that bilked the IRS out of over $1.5 million in fraudulent COVID-19 employment tax credits. Jackson operated a clandestine “ghost” tax preparation business on the side, exploiting the CARES Act for personal gain.
Acting U.S. Attorney Tara M. Lyons announced the guilty plea, detailing how Jackson filed bogus claims for refunds between June 2022 and August 2023. The scheme involved submitting thirty-five IRS Form 941s – Employer’s Quarterly Federal Tax Returns – riddled with fabricated employee information and wages. Jackson attempted to claim a staggering $4,112,297 in fraudulent tax refunds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Employee Retention Credit (ERC) to incentivize businesses to retain employees during the pandemic. Jackson, however, saw it as an opportunity for theft. His fabricated Forms 941 listed nonexistent employees and wages, effectively tricking the U.S. Treasury into issuing $1,567,855 in refunds to himself and his two clients.
What made Jackson’s operation particularly insidious was his status as a “ghost preparer.” He deliberately avoided identifying himself on the tax returns, omitting a Preparer Identification Number (PTIN) – a requirement for all paid tax preparers – in the “Paid Preparer Use Only” section. This allowed him to operate under the radar, concealing his involvement in the fraudulent activity.
“Jackson’s guilty plea serves as a reminder to those who committed fraud on programs under the CARES Act that they will be held accountable,” stated Demetrius Hardeman, Special Agent in Charge of IRS Criminal Investigation’s Atlanta Field Office. “IRS Criminal Investigation special agents are still opening cases and investigating those who stole funds that were intended for American workers, families, and small businesses.”
Jackson now faces up to 20 years imprisonment, a period of supervised release, restitution for the stolen funds, and substantial monetary penalties. The case underscores the IRS’s continued crackdown on COVID-19 related fraud, sending a clear message that those who exploit federal programs for personal enrichment will face the full force of the law. Sentencing details will be announced at a later date.
RELATED: Union City’s Jackson Pleads Guilty to $4M COVID-19 Fraud
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Key Facts
- State: Georgia
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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