The U.S. District Court for the Southern District of Indiana has issued a permanent injunction against an Indianapolis-area tax preparer, Juan Santiago, and his company, Madison Solutions LLC. The court's decision prohibits them from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future.
Juan Santiago, who resides in Lakeland, Florida, travels to Indianapolis during the tax season to run his business. He did not respond to the civil complaint filed against him, leading the court to issue a default judgment.
The complaint alleges that Santiago and Madison Solutions engaged in various schemes to unlawfully reduce their clients' tax liabilities or secure undeserved refunds. Allegations include placing false items on customers' returns without their knowledge, such as incorrectly electing head of household status and child tax credits. It also claims that Santiago fabricated businesses and expenses on returns to lower taxable income fraudulently.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division announced this development.
Taxpayers are advised by authorities to be cautious when selecting a return preparer. The IRS provides resources on its website for choosing a reliable preparer and offers a free directory of federal tax preparers along with tips to avoid fraud during tax season.
Over the past ten years, hundreds of unscrupulous tax preparers have been enjoined by the Justice Department’s Tax Division. More information about these cases is available on their website, including an alphabetical list of individuals prohibited from preparing returns or promoting tax schemes. Concerns about violations can be reported directly to the Tax Division.