DOJ Moves to Block Florida Tax Preparers

Federal officials have filed a civil case to stop a group of tax return preparers in Florida from continuing their work, saying they helped clients file false tax returns. The case was brought by the U.S. Department of Justice in a federal court in southern Florida. The complaint names Cedric Reid, Juan Santana, and a business called Advance Tax Group Inc. The filing states that the business operated out of offices in Daytona Beach and Ocala.

According to the complaint, the preparers are accused of filling out tax returns with false details in order to reduce the amount of tax their clients owed and increase refunds. Officials say the returns included claims that were not true or were inflated. These included wrong filing statuses, exaggerated business losses, and fake expense claims. The complaint also points to false claims for certain tax credits, including fuel and education credits, which are meant to reduce tax bills for those who qualify.

The government claims that these actions were not mistakes but part of a pattern. By entering false data, the preparers were able to increase refunds for clients who did not qualify for those amounts. In many cases, the earned income tax credit, a benefit meant for lower-income workers, was increased using inaccurate information. The complaint says the preparers did not follow the required steps that are meant to check and confirm eligibility for that credit.

Officials estimate that the total loss to the government from these actions was more than $7 million over the years 2023 and 2024. This figure is based on the tax returns that were reviewed as part of the investigation. The Justice Department is now asking the court to block the individuals and their business from preparing federal tax returns in the future.

The case is being handled by attorneys from the Tax Litigation Branch of the Civil Division. A deputy assistant attorney general announced the action and stated that the department will continue to pursue cases involving false tax filings and improper conduct by return preparers.

Federal officials have also warned the public to be careful when choosing someone to prepare tax returns. They say that while many preparers follow the law, some do not, and this can lead to serious problems for taxpayers. Even if a preparer is the one who enters false information, the taxpayer who signs the return may still be held responsible. This can lead to penalties, repayment of refunds, and possible legal trouble.

The Internal Revenue Service offers tools to help people find qualified tax preparers. There is a public directory that lists preparers who meet certain standards, along with tips on what to look for when hiring someone. Officials suggest checking a preparer’s background, asking questions about how returns are handled, and avoiding anyone who promises unusually large refunds without reviewing full financial details.

The Justice Department has taken similar actions in the past. Over the last ten years, courts have approved orders that stopped hundreds of tax preparers from continuing their work after they were found to have broken tax laws. These orders, known as injunctions, are meant to prevent further harm and protect taxpayers from being misled.

The department also encourages people to report concerns if they believe a barred preparer is still working or if they suspect dishonest practices. Reports can be made to the Tax Litigation Branch with details about the situation. This helps investigators follow up and take action when needed.

As the case moves forward, it serves as another reminder that tax rules must be followed by both preparers and taxpayers. Officials say accurate reporting is key to keeping the system fair. The outcome of the case will determine whether the named individuals and their business will be permanently blocked from preparing tax returns for others.

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Justice Department Seeks to Shut Down Florida Return Preparers

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