Tax Fraud Blotter

Saturday, June 20, 2015 Print Email

Tampa, Fla:

Mr. Octavio Cruz and his business Advantage Accounting Corp. have been restricted from preparing returns for public. The restriction was imposed by a U.S Court under a civil injunction order (CIO) which was rightly agreed by Mr. Cruz.

The civil proceedings against Cruz were conducted against a complaint in August 2014 as per which Cruz and his business was involved in preparing unlawful returns which understated tax liabilities and enhanced refunds. This was done by increasing tax credits and deductions for which his clients were not legally eligible.

His mala-fide practice comprised of wrongly claiming non applicable residential energy and childcare credits and falsifying losses for fictitious businesses in schedule C. As per the civil suit, Cruz is alleged in preparing returns that wrongly claim Credits for American Opportunity for taxpayers which were unqualified for this purpose.

As per the government, alleged losses to the treasury might be in millions of USD.

As per the CIO, Cruz is required to provide a comprehensive list of customers on behalf of whom he has been preparing returns or has claimed refunds from 01 January 2012.

N. Las Vegas, Nev:

Civil Injection Order (CIO) of a federal court has pleaded guilty practitioner Sheila Bunting and Five Star Tax, LLC (her business). Under the order, both Sheila Bunting and Five Star Tax, LLC are barred from preparing returns that include income which is foreign earned and have also been restricted from endorsing the foreign earned income’s exclusion to others.

As per the complaint, Sheila Bunting intentionally omitted foreign based income while calculating federal taxes for her clients which resulted in inflated refunds and understating of tax liabilities.

According to the CIO, Sheila Bunting did not follow the official list of countries eligible for waiver while excluding the foreign based income for her clients.

Under the CIO, Sheila Bunting is required to provide a comprehensive list of all of her clients for whom she has been doing such mala-fide practice since 01 January 2012.

Source: ReadyRatios

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