Source: United States Department of Justice Criminal Division
The U.S. District Court for the Southern District of Florida issued a permanent injunction today against Miami tax return preparer Richard Louis, which bars him from preparing federal income tax returns, working for or having any ownership stake in any tax preparation business, assisting others (including family members) prepare tax returns or set up business as a preparer and transferring or assigning customer lists to any other person or entity. The court also ordered Louis to disgorge $390,000 in ill-gotten gains he received from his return preparation business. Louis agreed to both the injunction and ordered disgorgement.
In June, the Court enjoined seven independent contractors who worked with Louis — Harold Bornelous, Romeo Davis, Teddy Davis, Joseph Garrett, Demetrius Knowles, Daniel Oku and Marlyne Wah — from preparing returns for others, but allowed the seven defendants to apply for reinstatement as return preparers after two years if they successfully complete the IRS’ Annual Filing Season Program. The independent contractors agreed to the injunctions entered against them.
The complaint alleged that Louis and the independent contractors prepared returns for customers that claimed various false or fabricated deductions and credits, including fabricated residential energy credits, false and exaggerated itemized deductions and fictitious and inflated business expenses. According to the complaint, Louis marketed himself as Taxman and he, acting in concert with the seven independent contractors, prepared thousands of tax returns for customers over the past ten years.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.