A North Texas tax return preparer has been permanently banned from preparing tax returns for others after allegedly engaging in fraud that cost U.S. taxpayers more than $20 million in fraudulent refunds.
The U.S. District Court for the Northern District of Texas issued a permanent injunction on August 14 against Ruben Gonzalez, who runs Sin Barreras Income Tax in Fort Worth. The injunction bars Gonzalez and anyone acting with him or at his direction from preparing tax returns for others. Gonzalez did not admit to any wrongdoing related to the allegations but did consent to the permanent injunction.
Gonzalez must send notice of the injunction to all his customers dating back to January 1, 2021. Gonzalez is also required to post a copy of the injunction at all his business locations. He must also post a statement on all his business social media accounts and websites noting that he is barred from preparing tax returns.
“The government’s complaint alleged that Gonzalez or those working for him significantly overstated customers’ tax refunds in a substantial number of returns prepared at the business from 2021 to 2023, by fabricating or inflating business losses, by fabricating charitable donation deductions, and by falsely claiming energy credits and coronavirus family sick leave credits to which the customers were not entitled,” reads a press release published by the DOJ.
The overstating of customers’ tax refunds cost the United States more than $20 million in lost tax collections between 2021 and 2023.
The DOJ filed a three-count indictment against Gonzalez in June, which charged him with one count of deceptive or fraudulent conduct that interferes with Internal Revenue Code administration and two counts of unlawful interference with enforcement of the Internal Revenue laws.
The DOJ’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers in the past 10 years, according to the press release.