Miami tax preparer accused of tax scam, facing DOJ shutdown

FLORIDA — The US Department of Justice (DOJ) is taking legal action to shut down a Miami-based tax return preparer and bar him from preparing tax returns for others.

The DOJ alleges that Aniel Saint-Hilaire cost the United States millions by understating his customers’ tax liabilities.

The Justice Department filed a complaint on February 27 seeking to bar Mr Saint-Hilaire from owning or operating a tax return preparation business and preparing tax returns for others.

The civil complaint against Aniel Saint-Hilaire was filed in the U.S. District Court for the Southern District of Florida.

The complaint alleges that Mr Saint-Hilaire, through his numerous business entities, prepares federal income tax returns for Miami-area taxpayers on which he claims fraudulent deductions and credits to purposely underreport the tax his customers owe and claim refunds they are not entitled to receive.

Specifically, the complaint alleges that Saint-Hilaire prepared returns with false or inflated deductions, business expenses, and business losses, as well as false claims for residential energy credits, fuel tax credits, and other credits.

The complaint also alleges that Mr Saint-Hilaire hides his tax preparation activity by failing to properly identify himself on the tax returns that he prepares.

The government further alleges that Saint-Hilaire files thousands of tax returns each year, with approximately 99 percent of the returns he prepares claiming a refund. By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Mr Saint-Hilaire’s conduct, resulting in a significant loss in tax revenue of an estimated $16.5 million yearly.

According to the complaint, in addition to seeking an injunction against Saint-Hilaire, the government requested an order of disgorgement to prevent Mr Saint-Hilaire from profiting from his violation of the internal revenue laws.

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

The DOJ said taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications taxpayers should seek from their return preparer.