A federal court in the Northern District of Illinois has enacted a permanent injunction against Joliet tax return preparer Sir Michael Joseph Davenport and his company, My Unity Tax Financial & Tax Preparation LLC. According to a Justice Department announcement, Davenport and his company are now forbidden from preparing federal tax returns for others or owning, or operating any tax return preparation businesses in the future. The action follows allegations that Davenport produced false tax returns, leading to improper tax refunds or reduced liabilities for his clients.
The civil complaint that prompted the injunction detailed numerous fraudulent activities purportedly conducted by Davenport and his company. My Unity Tax, reportedly, listed non-existent businesses, minimal or inflated expenses, and little to no income to illegally minimize taxable income for their clients. Moreover, operating as a "ghost preparer," Davenport avoided signing the tax returns or including his Preparer Tax Identification Number (PTIN) he was issued by the IRS, enabling the returns to appear as though they were self-prepared by the customers.
This case comes amidst a broader Justice Department crackdown on illegal tax preparation enterprises. Over the past decade, the department has successfully obtained injunctions against a multitude of unscrupulous tax preparers. The greater list of the enjoined individuals or entities is available for public scrutiny on the Justice Department's website. Taxpayers are advised to exercise caution when choosing a tax preparer and can access IRS-provided resources and directories to aid in selecting credible practitioners.
Deputy Assistant Attorney General David A. Hubbert highlighted the commitment of the Justice Department's Tax Division to pursue malfeasants in the industry. Through the agency's efforts, hundreds have faced legal action in an ongoing endeavor to protect consumers. The IRS continues to caution taxpayers about "ghost preparers" and provides a list of unethical practices employed by tax preparers, issued as a warning for individuals seeking such services. Should any individual suspect a violation of enforced injunctions, the Tax Division encourages contact with detailed information regarding the potential breach.
