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09/15/2010

News / Federal Court Shuts Down Orlando, Florida, Tax Preparer

Orlando, Florida Tax Preparer Claims False Filing Status for Customers and Fabricates Deductions and Credits to Fraudulently Reduce Customers’ Taxes

WASHINGTON - A federal district judge in Orlando, Fla., has permanently barred Elisa Veronica Barron of Orlando from preparing federal tax returns for others, the Justice Department announced today. According to the order, Barron is a return preparer operating under the name, “Lancaster Tax Service Inc.” The court also ordered Barron to mail copies of the court order to her customers.

The court found that Barron prepares tax returns using false information in order to reduce her customers’ tax liabilities. Specifically, the court found that Barron unlawfully reduced her customers’ reported income by claiming unsubstantiated and fraudulent deductions and credits. Additionally, the court found that Barron routinely misrepresents her customers’ filing status and number of their dependents to allow them to improperly claim the earned income tax credit.

According to the complaint, the government estimates that this alleged fraudulent tax preparation scheme by Barron resulted in an understatement of her customers’ federal income tax liabilities of more than $1 million for returns that Barron prepared in 2006-2007 alone.

Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website.

http://www.justice.gov/opa/pr/2010/September/10-tax-1025.html

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