No, Really, Will This Get Me Audited?

Categories: Biz

I hope Dallas' Lennon Madzima did not prepare your income tax returns. Because the feds allege today that Madzima falsified some 1,100 returns since tax year 2004, with the amounts in question somewhere in excess of one ... million ...dollars. Like this, from the Justice Department this afternoon:

According to the government complaint, Madzima included fabricated claims for federal fuel tax credit, telephone excise tax refunds and other deductions on tax returns that he prepared since 2005. For example, it is alleged in the complaint that Madzima prepared 2005 and 2006 tax returns for one customer claiming bogus fuel tax credits for purported fuel purchases that would have cost the customer in excess of $13,000 more than he reported in income in those years.
The lawsuit's here, for those customers of Sameday Tax Services at 3530 Forest Lane who're wondering what kind of penalties they might be facing (substantial). Otherwise, the U.S. Attorney's media release follows. --Robert Wilonsky

JUSTICE DEPARTMENT SEEKS TO SHUT DOWN DALLAS TAX PREPARER

Tax Preparer's Business Allegedly Filed Returns with $1 Million in Bogus Fuel Tax Credit Claims on More Than 1,100 Returns

WASHINGTON - Lennon Madzima, a Dallas tax return preparer, has been sued for allegedly claiming bogus deductions and credits on customers' federal tax returns, the Justice Department announced today. The civil injunction suit, filed in the U.S. District Court for the Northern District of Texas, seeks to bar Madzima and his Dallas business, Sameday Tax Services, from preparing federal tax returns for others.

According to the government complaint, Madzima included fabricated claims for federal fuel tax credit, telephone excise tax refunds and other deductions on tax returns that he prepared since 2005. For example, it is alleged in the complaint that Madzima prepared 2005 and 2006 tax returns for one customer claiming bogus fuel tax credits for purported fuel purchases that would have cost the customer in excess of $13,000 more than he reported in income in those years.

The government's complaint also alleges that Madzima's false claims for federal fuel tax credits appeared on more than 1,100 returns since tax year 2004 and exceeded $1 million. Fraudulently claiming the fuel tax credit is one of the Internal Revenue Service's "Dirty Dozen" tax scams for 2008.

"In the past year, the Justice Department has obtained injunctions shutting down several tax preparers who allegedly claimed bogus fuel credits," said Nathan J. Hochman, Assistant Attorney General of the Justice Department's Tax Division. "Since 2001, the Justice Department's Tax Division has obtained injunctions against more than 340 tax-return preparers and tax-fraud promoters."

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