Justice Dept Sues Tax Firm for Alleged Fraud

The Justice Department filed a civil injunction suit today in federal court in Tyler, Texas. The lawsuit seeks to bar Hudrell Lemontez Jones, Brenda Jackson Thomas and D&B Professional Tax Services LLC from owning or operating a tax return preparation business and preparing tax returns for others.

According to the complaint, Jones operated and prepared returns through an unincorporated business, D&B Professional Tax Services, starting in 2020 before forming D&B Professional Tax Services LLC in 2022. Additionally, according to the complaint, Thomas has prepared returns in connection with Jones since 2020 and is an owner of or has otherwise shared in the profits generated by D&B Professional Tax Services LLC.

The complaint alleges that Jones and Thomas prepare and file tax returns that falsely reduce their customers’ taxable income and falsely increase their customers’ refunds, while profiting by charging their customers substantial return preparation fees – at the expense of the Treasury. The complaint alleges that the defendants engage in misconduct, including:

  • Fabricating businesses and related business income and expenses,
  • Claiming false mortgage interest deductions,
  • Claiming fabricated COVID-19-related tax credits, and
  • Improperly concealing their status as preparers of certain returns by using the names and ID numbers of other preparers.

The Tax Division reminds taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully ( Choosing a Tax Professional and How to Choose a Tax Return Preparer ) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.

In addition, IRS Free File , a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

In the past decade, the Justice Department’s Tax Division has obtained civil injunctions and criminal convictions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page

Public Release. More on this here.