Federal court permanently shuts down Detroit tax preparer business for false tax returns
(CBS DETROIT) - A federal court has permanently closed a Detroit-based tax preparer business after officials alleged it prepared fraudulent federal tax returns.
According to a civil complaint, federal officials say Latavia Garrett, Latrina Hall and their tax preparation company, Detroit Tax Solutions LLC, reported false income and expenses from fake businesses, falsely claimed eligibility for child tax credits and education credits, and falsely claimed dependents to increase the amount of income tax credits earned.
The company also used falsely-reported prior year earned income to make customers eligible for tax credits and underreporting wage income.
Additionally, Hall acted as a ghost preparer, which she failed to sign tax returns that she prepared and identify herself on the returns.
Federal officials say the company's fraudulent tax preparation led to a combined loss to the U.S. exceeding $1.2 million for tax years 2019 and 2020.
Garrett and Hall are ordered to send notice of injunction, or warning, to each person their company prepared tax returns, amended returns or claims for refunds after Jan. 1, 2019, and post an electronic copy of the injunction on the business' social media profile created in the last five years.