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Legal action sought to stop Arizona tax business for committing fraud

Byeditor

Apr 3, 2024

The Justice Department has filed a request for a permanent injunction against a tax preparation business in Arizona and its tax preparers for alleged fraudulent activity. The request is aimed at dismantling Golden Heart Tax Services and preventing the defendants from owning or operating a tax preparation business or preparing tax returns. The complaint also seeks a court order for the defendants to return preparation fees earned by allegedly preparing fraudulent or false tax returns.

The defendants named in the injunction are Mayuen Ajak, Yier Deng, Bol Guot, and Gabriel Kuot, along with Golden Heart Tax Services LLC. The business is currently operating in Arizona, Texas, Missouri, and Nebraska, with its founding taking place in Texas in 2018.

The complaint accuses the defendants of falsely preparing tax returns to increase customer refunds and profiting through undisclosed preparation fees. They are alleged to have claimed false fuel, COVID-related, education, and earned income tax credits, as well as fabricating business-related incomes. Many of the defendants’ clients are immigrants who have little knowledge of US tax laws and are targeted by the defendants for their services.

The IRS estimates that approximately $10 million was lost due to the defendants’ alleged misconduct, resulting in underreported income or unpaid taxes. To help taxpayers avoid unethical tax preparers, the IRS has provided information on its website on how to select a reputable tax return preparer and offers a directory of approved providers. Be sure to follow @KTAR923 for updates and news. If you have a story idea or tip, please reach out to the KTAR News team.

By editor

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