Barring Non-Compliant EITC Return Preparers from Filing Tax Returns

An injunction temporarily or permanently bars a preparer from filing federal tax returns. We reserve this targeted treatment for extreme cases when earlier compliance efforts failed.

We streamlined our injunction process to stop preparers who continue to fail to meet their EITC due diligence requirements. This improved process lets the Department of Justice and us move quickly to shut down preparers when we identify a history of problems. The average time to obtain an injunction is 12 months compared to several years.

We pursue injunctions against preparers with a history of not meeting their EITC due diligence requirments, including:

• Previous due diligence and other return preparer penalties,
• Prior e-file warnings or suspensions,
• IRS found a high percentage of clients with reversed or reduced EITC claims; and/or
• Non-compliance related to personal or business tax returns.

These preparers could also face criminal prosecution and/or additional penalties.

Cost to Government and Taxpayers

With this new process, we can shut down return preparers who are costing the government and taxpayers a great deal of money in EITC overclaims. The preparers listed below received an injunction barring them permanently from preparing federal tax returns or barring them from preparing improper federal tax returns. The nine full injunctions represented over $81 million dollars in harm to the government. 

Streamlined injunction Results

Recent Department of Justice news releases announced injunctions against return preparers. We developed the injunctions listed below using our new process and all involved EITC fraud:

• Federal court permanently bars Lakeisha Pearson of Birmingham, Alabama from preparing federal tax returns for others. Pearson received the injunction for continually preparing federal tax returns she knew or should have known were not eligible to claim EITC and for not meeting her EITC due diligence requirements. Pearson operated under these business names: LGS Tax Service, PositiveEndeavors LLC, and AGA Tax Service. (January 27, 2012).

• Federal court permanently barred Carmen Gonzalez from preparing federal tax returns for others. Gonzalez consented without admitting wrongdoing to the civil injunction order. Gonzalez, of Allentown, PA. formerly owned and operated Carmen Tax Services in New Brunswick, N.J.(December 15, 2011)

• Federal court permanently barred Tracy Bonds of Tickfaw, LA. from preparing improper EITC tax returns.  Bonds does business as Tracy's Tax Service. The injunction order requires that Bonds review and document information obtained from her customers to verify that they are eligible for EITC. Under the order, Bonds must also complete six hours of tax preparation education and must post the injunction order in her place of business for two years so that customers are aware of the requirements imposed on her. (October 25, 2011).

• Federal court permanently barred Luvander Hollaway from preparing federal tax returns for others. Hollaway is a resident of Newark, N.J (October 17, 2011)

• Federal court permanently barred  Cecil A. Collier of Georgia from preparing federal tax returns for others. Collier worked under the trade name Cairo Fast Tax. (July 7, 2011) 

• Federal Court Permanently Bars Endia Delores Nipper, Jessie Mackie and their business, TDNS Tax Service located in Augusta, GA from preparing federal income tax returns for others and from operating their tax preparation business.  (May 27, 2011)

• Federal Court Permanently Bars Sony Ducasse of Greenacres, Florida from Preparing Tax Returns For Others  (January 12, 2011)

• Federal Court Bars Maritza Villanueva of Irving, Texas from Preparing Tax Returns  (December 14, 2010)

• Federal Court in Atlanta Permanently Bars Saloum A. Njie and his company, MIAAS Associates LLC from Preparing Tax Returns for Others  (August 24, 2010)

Federal Court Barred but No News Release Issued

• Federal Court barred Martha A. Velarde of Los Angeles, CA from preparing improper EITC tax returns. Velarde does business as MAV Service. The injunction order requires that Verlarde review and document information obtained from her customers to verify they are eligible for EITC. She must also take tax preparation education. (September 13, 2011)

Past Actions:

• Federal Court Bars Ludivina Salinas of Mission, Texas from Preparing Tax Returns (October 6, 2009)

Pending Actions:

• Justice Department Seeks to Shut Down Detroit Tax Preparer.  The United States has sued Crystal Ireland and her business, Master Mind Preparation to bar them from preparing tax returns for others. (September 20, 2011) 

Click here for information on additional forceful actions taken against preparers committing fraud.

Additional Resources Links (click on any topic listed below for additional information on the subject):

• EITC Preparer Information on irs.gov
• Consequences of Filing EITC Returns Incorrectly
• EITC Preparer Compliance - Targeted, Tailored and Tiered
  
  • Reaching Out to New and Experienced Preparers
  • Visiting Preparers Filing Highly Questionable Returns
  • Auditing for Due Diligence Compliance
  • Additional Forceful Actions Taken Against Fraudulent Return Preparers

Last updated: 2/14/2012