COURT SHUTS DOWN TAX PREPARER ACCUSED OF OVERSTATING REFUNDS THROUGH FICTITIOUS REPORTING

FROM:  U.S. JUSTICE DEPARTMENT  
Friday, March 21, 2014
Federal Court Shuts Down Florida Tax Return Preparer

Return Preparer in Plantation, Fla., Allegedly Overstated Refunds Through Fictitious or Inflated Income, Filing Statuses, Exemptions and Tax Credits
A federal court in Fort Lauderdale, Fla., permanently barred Keisha Stewart, a tax preparer in Plantation, Fla., from preparing federal tax returns for others, the Justice Department announced today.  Stewart agreed to the civil injunction order, and a stipulated final judgment of permanent injunction was entered against her by the court on March 20, 2014.

The complaint alleged that Stewart prepared federal income tax returns for customers that inflated income or included fictitious income to qualify her customers to receive or to maximize the earned income tax credit; claimed false tax credits that are refundable or decrease the amount of tax on her customers' returns, including phony education credits (American Opportunity Credit) and residential energy credits; falsely claimed head of household status on behalf of customers who did not qualify in order to improperly decrease their reported tax liabilities; and claimed false dependents on behalf of customers and also claimed the child and additional child tax credits on their behalf.
         
Return preparer fraud is one of the IRS'   Dirty Dozen Tax Scams for 2013 .