Injunction sought against Arizona tax business for fraud

KTAR.com
3 Min Read


PHOENIX — The Justice Department on Tuesday filed a request for a permanent injunction against a tax preparation business with operations in Arizona and its tax preparers, alleging fraudulent activity.

The request aims to dismantle Golden Heart Tax Services and prevent the defendants from owning or operating a tax preparation business and preparing tax returns, the U.S. Department of Justice’s Office of Public Affairs said in a press release.

The complaint also requests that the defendants receive a court-order to return preparation fees they illicitly earned by allegedly preparing fraudulent or false tax returns.

Defendants Mayuen Ajak, Yier Deng, Bol Guot and Gabriel Kuot, along with Golden Heart Tax Services LLC, are included in the injunction.

Golden Heart Tax Services is currently operating in Arizona, Texas, Missouri and Nebraska. It was founded in Texas in 2018.

What are the tax prep defendants accused of doing?

The complaint alleges that the defendants falsely prepared tax returns to increase customer refunds and would profit through high undisclosed preparation fees.

The defendants are accused of claiming false fuel, COVID-related, education and earned income tax credits, as well as fabricating business-related incomes.

“Many of the defendants’ customers are immigrants to the United States who speak and/or read little or no English and have little or no knowledge of, or experience preparing or filing, United States federal income tax returns,” the complaint said.

“For example, the individual defendants, who are originally from Sudan, solicit many fellow Sudanese immigrants as customers, often at their customers’ places of employment.”

The Internal Revenue Service estimates approximately $10 million was lost in underreported income or unpaid taxes due to the defendants alleged misconduct.

To avoid unscrupulous tax preparers, the IRS launched information on its website that covers how to chose a tax return preparer and a directory.

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Top Stories – KTAR.com , 2024-04-03 17:00:04
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