A federal court in Nevada has barred the owner of several Instant Tax Service Franchises from preparing tax returns. Benyam Tewolde and his wife signed an injunction order without admitting guilt which was signed by the US District Court Judge Miranda M. Du.
Apparantly Mr. Benyam and his staff were helping clients fabricate business and income information, falsely claiming filing status, and education credits, selling bogus loan products, and filing returns without customer consent. They also allegedly filed fraudulent personal returns on their own income.
The injunction bars Mr. Tewolde and his wife from preparing or filing federal tax returns for other people, training tax preparers or owning/managing a tax preparation business…forever.
The Feds are also after the Franchisor Instant Tax Service and it's owner, Fesum Ogbazion in Dayton, Ohio.
The Justice Department's Tax Division has obtained hundreds of injunctions in the last decade against tax preparers that defraud taxpayers and those who file fraudulent returns.
Information about these types of cases is available on the Justice Department's website .
If you are going to hire someone to help you create a current year tax return, we always advise that you use a reputable CPA, especially if you are in business or have rental properties. You can contact us and request our CPA referral list.
Image Credit: patentspostgrant