Alleged Tax Scammers Target Lower Income Taxpayers

On Time Tax Consultants after the Raid – You May Not See That Rapid Refund “On Time”

The IRS is cracking down on Tax Fraud by Return Preparers. While most tax return preparation providers are competent  to handle most of your tax return needs, there are still those lurking amongst us whom are con artists filing fraudulent tax returns and stealing their client’s money.

Don’t believe it can happen to you?  Think again!

On March 24, 2011—just a few days ago— On Time Tax Consultants & Mulit Services Inc., tax preparation service  in Gainesville, FL was raided by authorities for alleged fraudulent tax preparation activity.  With bars on the entrance and advertisements on the windows broadcasting such things as “Professional Tax Preparation,” “Fast and Accurate,” “Rapid Refund,” and “Earned Income Credit,” the exterior of the business looks sketchy at best.  I can only wonder if the offers of a “Referral CASH Bonus” and “Bill Pay” enticed unknowing taxpayers into their ploy.

Allegedly, On Time Tax Consultants were making up jobs and income on tax returns to qualify their Customers for a larger tax refund from the Earned Income Tax Credit.  From the tax refunds, On Time Tax Consultants were taking out 30%+ as “compensation” for their services.  Some Customers were receiving refunds as high as $7000.

On Time Tax Consultants, located on 1527 NE Eighth Avenue in Gainesville, Florida is owned by Tyrone Frederic of Lauderdale Lakes, FL according to public Florida business filings on  Frederic started up On Time Tax Consultants less than six months ago and oddly, his business address is still listed as Sunrise, FL.  Also listed in the Sunbiz corporate filing is Jason Jimeno – the company’s COO and Registered Agent.  See the full story here:

How Could This Affect ME?

According to law, YOU, the taxpayer, are ultimately responsible for all information provided on your tax return. Thus, even if someone else, such as a tax preparation service, fills out your tax return, you must act in good faith to ensure all information on the return is correct.

If the information on your tax return is incorrect, the IRS will come after YOU for any underpayment, in addition to penalties and interest.

If you willfully submit a fraudulent tax return, you can be charged with a felony, punishable by up to one year in PRISON and a $10,000 FINE.

Bottom line – You don’t want to be the subject of an IRS audit or investigation, especially for something someone else did!