Federal Court Shuts Down Eastern Washington Tax Return Preparer | WPN World People News

A federal court entered a permanent injunction Wednesday against Grandview, Washington tax return preparer Jose Magana and his business, Genesis Bookkeeping and Accounting. The injunction bars Magana and Genesis Bookkeeping from preparing tax returns for others. Magana and Genesis Bookkeeping admitted in a court filing that they had interfered with the enforcement and administration of the federal tax laws. They agreed to entry of the injunction.

According to the United States’ complaint, Magana and his business have engaged in a pattern of claiming for their clients false or inflated dependency exemptions, inappropriate filing status, and false or inflated Child Tax Credits and Additional Child Tax Credits. Their practice of claiming these false exemptions and credits has resulted in significant lost tax revenues by understating tax liabilities and claiming improper refunds, according to the suit.

Specifically, the suit alleges that, as of March 26, 2015, the Internal Revenue Service (IRS) had examined close to 300 tax returns that Magana and Genesis Bookkeeping and Accounting had filed from 2012 through 2014. Over 95 percent of these examinations resulted in adjustments to tax, with proposed deficiencies averaging approximately $3,150 per return, according to the complaint. The suit alleges that Magana and his business prepared more than 10,000 returns from 2012 through 2014.

Source: U.S. Department of Justice