Federal Court Bars Hialeah, Florida Woman from Preparing Tax Returns for Others

Tax Preparer Allegedly Fabricated Education Credits & Various Deductions to Secure Fraudulent Refunds for Customers

WASHINGTON, FRIDAY, MARCH 28, 2008 – Lilia A. Gomez of Hialeah, Fla., was barred by a federal court today from preparing federal income tax returns for others. Gomez operated tax return preparation businesses under the names Tax Prep Inc., 1 Tax Prep Inc. and TFD Services Inc. Judge Patricia Seitz of the United States District Court for the Southern District of Florida issued the permanent injunction order against Gomez and her businesses. Gomez consented to the court order.

Gomez has been preparing tax returns for approximately 20 years, mostly for immigrants, many of whom do not speak English and rely on her to properly prepare their tax returns, according to the government’s complaint. The complaint also alleged that Gomez prepared over 1200 amended tax returns seeking a refund of education credits for which her clients did not qualify. Additionally, according to the complaint, Gomez falsified deductions and other information on her clients’ returns so as to reduce their tax liability.

As stated in the complaint, it is estimated that the tax loss from the false education credit claims total $1.2 million. The Internal Revenue Service estimates that this fraudulent tax preparation scheme resulted in an additional understatement of customers’ federal income tax liabilities by several million dollars between 2003 and 2004.

Since 2001, the Justice Department’s Tax Division has obtained more than 315 injunctions against tax-fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website, as is information about the Justice Department’s Tax Division.

Source: Justice Department

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