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February 06, 2012
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Taxation Legal News

 


U.S. Asks Federal Court to Bar Dallas Man from Preparing Tax Returns for Others

The United States has sued a Dallas, Texas, man, seeking to bar him from preparing federal income tax returns for others, the Justice Department announced today. According to the government’s civil injunction complaint, Farai Mushaninga, who operates FW Hawk Services and FW Hawk Taxes in Dallas, prepared federal income tax returns claiming fraudulent fuel tax credits, a scam that the complaint says is a serious enforcement problem for the Internal Revenue Service (IRS).

The government’s complaint alleges that Mushaninga fraudulently prepared a return for one customer, a cashier, claiming that she bought 19,050 gallons of gasoline for business-related purposes. The suit notes that for such a claim to be accurate, the cashier (whose total income for the year was $392) would have had to spend approximately $41,910 for gasoline that year—nearly 110 times her total income—and would have to have driven approximately 381,000 miles during the year, an average of 1,084 miles each day, seven days a week.

The government complaint alleges that Mushaninga has prepared at least 1,207 returns since 2006 and the IRS has identified over $900,000 dollars in fraudulent fuel tax credits on Mushaninga-prepared returns.

The Justice Department obtained an injunction last week against a Miami tax preparer in a case involving allegations of similar fraudulent fuel tax credits. http://www.usdoj.gov/tax/txdv07254.htm Since 2001, the Justice Department’s Tax Division has obtained more than 235 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department Web site at http://www.usdoj.gov/tax/taxpress2007.htm. More information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.

 

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Did You Know?    
 
 
Form 8308 is Report of a Sale or Exchange of Certain Partnership Interests
Report the sale or exchange by a partner of all or part of a partnership interest where any money or other property received in exchange for the interest is attributable to unrealized receivables or inventory items.

 


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News about Taxation cases in DC and nationwide:

Lake Worth Tax Return Preparer Convicted On Tax Fraud, Contempt Charges
Following a five-week trial, a federal jury in West Palm Beach has found defendant Louis Wayne Ratfield, a Lake Worth, Fla., tax return preparer, g...
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U.S. Asks Federal Court to Bar Dallas Man from Preparing Tax Returns for Others
The United States has sued a Dallas, Texas, man, seeking to bar him from preparing federal income tax returns for others, the Justice Department an...
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Is Estate Tax Reform Dead?
WASHINGTON, D.C. - Senate Republicans' attempt to push through a permanent cut in the estate tax before adjourning was nothing short of a...
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Taxation Terms

 


Today's Terms

Meal Expense Deduction

Definition:
Generally, you can deduct only 50% of your business-re-lated meal expenses while traveling away from your tax home for business purposes. Also, you can generally de­duct only 50% of certain reimbursements you make to your employees for meal expenses they incur while traveling away from home on business.

Employee

Definition:
Works for an employer. Employers can control when, where, and how the employee performs the work.

Form W-4, Employee's Withholding Allowance Certificate

Definition:
Completed by the employee and used by the employer to determine the amount of income tax to withhold.

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Taxation Hot Topics

 
Topics Related to Taxation Law:
  • Income Tax Cases
  • Recent Estate & Gift Tax Cases
  • Recent Income Tax Cases
  • State Statutes Dealing with Taxation

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DC Taxation Attorney

 
If you live in the following cities and need an taxation attorney you should contact our Taxation Attorney as soon as possible:

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