The Magic is gone; rent to scam; imprecision; and other highlights of recent tax cases.
Montgomery, Alabama: Tax preparer Alisaya Danita Thompson-Dixon, 44, has been sentenced to 37 months in prison to be followed by a year of supervised release for aiding and assisting in the preparation of false income tax returns.
Thompson-Dixon operated a tax prep business under the name Magic Tax Service and admitted to assisting in filing false returns on at least two occasions.
In February 2016, she helped a client file a return that falsely claimed business income of $2,150 while claiming $67,107 in expenses. She knew the client was not entitled to claim any business income or expenses; this resulted in a loss of $11,294 to the IRS. Thompson-Dixon also admitted to helping file an illegal return in January 2018, when she claimed false business revenue and expenses for a client that resulted in a tax loss of $10,499.
She was also ordered to pay a $100,000 fine and $21,793 in restitution to the IRS.
Markham, Illinois: A federal court has permanently enjoined two Chicago-area tax preparers from preparing returns for others and from owning or operating any tax prep business in the future.
The civil complaint alleged that Patricia Rivers, of Country Club Hills, Illinois, her daughter-in-law, Ki’esha Gary, of South Holland, Illinois, and her company, Alpha II Omega Tax, prepared federal income tax returns that made fraudulent claims to reduce clients’ tax liabilities and increase their…
