A federal court in the Northern District of Illinois has permanently barred Joliet tax return preparer Sir Michael Joseph Davenport and his company, My Unity Tax Financial & Tax Preparation LLC (My Unity Tax), from preparing federal tax returns for others. The injunction also prevents them from owning or operating any tax return preparation businesses in the future. Davenport agreed to this permanent injunction.
The civil complaint alleges that Davenport and his company prepared false and fraudulent federal tax returns to improperly reduce customers’ tax liabilities or obtain undeserved tax refunds. It claims that Davenport and My Unity Tax routinely reported fictitious businesses, minimal or no income, and large fabricated expenses on customer returns to fraudulently reduce taxable income. In most cases, these businesses did not exist.
The complaint further alleges that despite having a Preparer Tax Identification Number (PTIN) issued by the IRS, Davenport operated as a “ghost preparer” by not signing customers’ tax returns or identifying himself as the paid preparer with his PTIN. Additionally, it is alleged that Davenport and My Unity Tax used software intended for personal rather than professional use to prepare clients' tax returns, making it appear as though customers filed the returns themselves.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division announced the court's decision.
Taxpayers are advised to remain vigilant against unscrupulous tax preparers. The IRS provides information on its website for choosing a tax return preparer and offers a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts by some tax preparers.
Over the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of dishonest tax preparers. Information about these cases is available on the Justice Department’s website, which includes an alphabetical listing of persons enjoined from preparing returns and promoting tax schemes. If you believe an enjoined person or business may be violating an injunction, please contact the Tax Division with details.