U.S. District Court Grants Default Judgment Against Tax Preparer for Fraudulent Returns

The U.S. District Court for the Middle District of Florida granted default judgment and a permanent injunction against a tax return preparer and related business for preparing fraudulent federal income tax returns and failing to comply with discovery orders. Taxpayer, a tax preparer and sole owner of a tax preparation business, engaged in a pattern of fraudulent conduct, including fabricating itemized deductions, understating customers’ adjusted gross income through fictitious sole proprietorship losses, and exploiting residential energy credits to inflate refunds artificially. The district court held that permanent injunctive relief was appropriate under IRC sections 7402, 7407, and 7408 because Taxpayer ...