Florida tax preparer held in contempt by federal court

FLORIDA — A federal court said it is holding a Florida tax preparer in contempt after he allegedly violated a court injunction, the U.S. Department of Justice (DOJ) has announced.

A federal court in West Palm Beach held on March 20 that Jeffrey Cadet violated a permanent injunction entered against him on Aug. 12, 2019, which barred him from acting as a federal tax return preparer or requesting, assisting in, or directing the preparation or filing of federal tax returns for others, the DOJ said.

On Jan. 5, 2022, following an investigation of Cadet’s activities, the United States filed a Motion for Order to Show Cause asking the court to hold Cadet in civil contempt based on evidence that he was preparing tax returns without signing them as the return preparer. The Tax Division undertook the investigation as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns for others and to hold accountable those who violate their injunction.

According to the court, Cadet did not respond to the motion or contest the evidence against him. Based on the evidence presented by the United States, the court found that Cadet violated his injunction by continuing to prepare returns for customers and held him in civil contempt.

To remedy his contempt, the court ordered Cadet to disgorge $24,410 in ill-gotten fees he received for conduct that violated the injunction. The court also ordered Cadet to pay the United States $7,386.39 to reimburse the government for the attorneys’ fees it incurred to investigate and prosecute his post-injunction conduct.

The injunction barring Cadet from preparing tax returns remains in effect, and the United States remains authorized to monitor his compliance with the court’s orders.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.