A Bronx tax preparer was permanently barred from preparing federal tax returns.
In its civil complaint, the United States alleged that Rafael Alvarez and ATAX New York had prepared and filed fraudulent tax returns on behalf of their customers in which they falsely reduced their customers’ tax liabilities and generated tax refunds to which those customers were not entitled. According to the complaint, ATAX New York filed over 36,000 tax returns on behalf of its customers from 2016 to 2019.
The government’s complaint also asked the court to order disgorgement of the net profits that ATAX earned for preparing federal tax returns in which they made reckless or fraudulent claims with respect to their customers’ federal income tax liability. Alvarez and ATAX agreed to pay $159,600 to the United States in disgorgement.
“This office will take appropriate actions to shut down tax preparation businesses that prepare and file fraudulent returns and unfairly shift the tax burden to honest American taxpayers,” said Manhattan U.S. Attorney Audrey Strauss.