Justice Department Sues to Shut Down Texas Tax Preparer | WPN World People News

The United States has asked a federal court in McAllen, Texas, to permanently bar Melissa Alvarez and her companies, Best & Unique Income Services, Best & Unique Income Tax Melissa and Best & Unique Income Tax Services LLC, from preparing federal tax returns for others, the Justice Department announced.

According to the complaint, Alvarez, who lives and does business in McAllen, has been preparing tax returns for customers that contain false, improper or inflated deductions or tax credits, such as the earned income tax credit. Most of Alvarez’s customers allegedly reside in southern Texas.

In one example described in the complaint, Alvarez allegedly claimed business-expense deductions on tax returns for a customer who did not operate a business and without that customer’s knowledge.

The complaint further alleges that the IRS examined returns that Alvarez prepared from the 2004 through 2012 tax-filing seasons, and 97 percent of those returns were found to have understated the tax liabilities of Alvarez’s customers. According to the complaint, the IRS estimates that the total tax harm from Alvarez’s unlawful tax-preparation activities during that period could exceed $10 million.

Source: U.S. Department of Justice