The U.S. District Court for the Southern District of Florida has issued a permanent injunction against Miami tax return preparer Richard Louis, prohibiting him from preparing federal income tax returns, working for or owning any stake in a tax preparation business, assisting others in preparing tax returns, and transferring or assigning customer lists to any other person or entity. The court also ordered Louis to disgorge $390,000 in ill-gotten gains from his return preparation business. Louis agreed to both the injunction and the ordered disgorgement.
In June, the court enjoined seven independent contractors who worked with Louis—Harold Bornelous, Romeo Davis, Teddy Davis, Joseph Garrett, Demetrius Knowles, Daniel Oku, and Marlyne Wah—from preparing returns for others. However, these individuals may apply for reinstatement as return preparers after two years if they successfully complete the IRS' Annual Filing Season Program. The independent contractors agreed to the injunctions entered against them.
The complaint alleged that Louis and the independent contractors prepared returns that claimed various false or fabricated deductions and credits, including fabricated residential energy credits, false and exaggerated itemized deductions, and fictitious and inflated business expenses. According to the complaint, Louis marketed himself as "Taxman" and prepared thousands of tax returns over the past ten years in concert with the seven independent contractors.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers are advised to remain vigilant against unscrupulous tax preparers. The IRS provides information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. Additionally, the IRS offers guidance on credentials and qualifications that taxpayers should seek from their return preparer.
Over the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found online. If you believe that one of these enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.