A Kansas tax preparer gets an early vacation:
A federal judge in Kansas City, Kan., has issued a preliminary injunction barring a Garden City, Kan., tax preparer, Jose Lares, from preparing returns with false dependent exemptions and false filing statuses, the Justice Department announced today. Lares operates Dinero Rapido Tax Service in Garden City.
Why did his tax season come to an early end?
According to the government complaint, Lares claims false dependent exemptions and false filing statuses on customers’ returns.
That doesn’t mean Mr. Lares actually did this stuff. It’s possible he just doesn’t want to fight the largest law firm in the world, and it’s easier to do something else. But it does provide a warning: if a preparer is getting miraculous tax results, it could be too good to be true. If a bad preparer gets caught, all of his clients get audited, and it can get surprisingly expensive.
Update: Mary O’Keeffe notes in the comments that the injunction only prevents Mr. Linares “from preparing returns with false dependent exemptions and false filing statuses,” presumably leaving him free to prepare other returns. The Justice Department is still seeking to shut him down altogether.
Prior Coverage: Dinero Rapido tiene problemas