Florida tax preparers face DOJ bid to halt return filing work

Traders Union
All News
Financial News
Florida tax preparers DOJ case

Highlights

Cedric Reid, Juan Santana and Advance Tax Group Inc. face a DOJ lawsuit in Florida seeking to bar them from federal tax return preparation due to alleged fraud.
The government claims these defendants caused over $7 million in estimated tax losses in 2023 and 2024 through fraudulent filings and credits.
The Justice Department continues broad enforcement, having secured injunctions against hundreds of tax preparers for misconduct over the past decade.

Complaint targets alleged fraudulent filings

As reported by the U.S. Department of Justice, the government has filed a complaint in the U.S. District Court for the Southern District of Florida seeking to bar Cedric Reid, Juan Santana and Advance Tax Group Inc. from preparing federal income tax returns for others. The complaint says the defendants operate from offices in Daytona Beach and Ocala, Florida.

The Justice Department alleges the defendants prepared returns that claimed fraudulent deductions and credits, underreported customers' tax liabilities and sought refunds to which customers were not entitled. The filing specifically alleges false filing status claims, inflated or fabricated business expenses and losses, and false fuel tax credits, education credits and other credits.

Prosecutors also allege the defendants used false information to maximize customers' earned income tax credit and failed to meet IRS due diligence requirements tied to that credit. The government says the conduct caused estimated tax losses exceeding $7 million in 2023 and 2024 alone.

Broader enforcement pressure on tax preparers

Deputy Assistant Attorney General Joshua Wu of the Civil Division's Tax Litigation Branch announced the action, and attorneys Meredith Hollman and Amanda Cornwell are handling the case. The department also urges taxpayers to use caution when selecting preparers and notes that the IRS provides guidance and a free directory of federal tax preparers on its website.

Over the past decade, the Justice Department says it has secured injunctions against hundreds of tax preparers accused of misconduct. It also maintains online information on those cases and a list of individuals barred from preparing returns or promoting tax schemes, while asking the public to report any suspected violations of existing injunctions.

Our earlier coverage of voluntary filing with the Federal Election Commission (FEC) explained when federal candidates and political committees must register and begin financial reporting after crossing contribution or spending thresholds, and why some choose to file earlier. We also outlined how voluntary filers can properly terminate their registration to avoid non-filer notices and other compliance issues.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.