Justice Department sues to shut down Florida return preparers

FLORIDA — The United States has filed a complaint in the U.S. District Court for the Southern District of Florida seeking to bar three Miami tax return preparers from owning or operating a tax return preparation business, according to the U.S. Department of Justice (DOJ).

Additionally, the DOJ said it is seeking to bar them from preparing federal income tax returns for others, as well as to require the defendants to disgorge the fees they received for fraudulently prepared returns.

The civil complaint was filed against Cindy Odige, Rudy Aly, Rhonda Hudge, and TUPS Tax LLC, the DOJ said.

According to the complaint, Odige, Aly and Hudge prepared and filed tax returns that falsely understated their customers’ federal income tax liabilities by fabricating businesses and related business expenses; making up education, fuel, residential energy, qualified and family sick leave, and mortgage interest credits; and inventing household help income and business losses to maximize customers’ Earned Income Tax Credits.

According to the complaint, the defendants prepared thousands of tax returns for tax years 2015 through 2020. The complaint alleges that the IRS reviewed income tax returns for 98 of the defendants’ customers and found that returns for 85 of those customers had fraudulent or fabricated information, often included without the customers’ knowledge or consent.

As a result, the complaint alleges, the defendants have cost the United States lost tax revenue, as well as the time and resources necessary to investigate the fraudulent returns. The complaint further alleges that the defendants harmed their customers, who could potentially face large income tax debts and may be liable for penalties and interest.

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