Fort Worth tax return preparer shut down over allegations of fabricated deductions
A federal court shut down a tax return preparer in Fort Worth over allegations that he fabricated businesses and other deductions to increase customers’ tax refunds.
Siza Mhlanga of Tax Refund Express is accused of reporting fake deductions for charitable donations, business losses, and education and energy credits to create larger tax refunds. In one instance, Mhlanga created a fake business for a customer and reported it lost $21,720, according to a complaint filed against Mhlanga in the U.S. District Court for the Northern District of Texas.
Over the tax years of 2017 and 2018, he filed hundreds of returns that understated his customers’ tax liabilities, the complaint said. He also did business under the names Camp Bowie Tax, Camp Bowie Tax Services, Tax Refund Company and United Tax Refunds. Mhlanga’s actions caused the United States to lose substantial tax revenue, according to the complaint.
Mhlanga consented to being permanently enjoined from owning or operating a tax return preparation business and preparing tax returns for others, the U.S. Justice Department announced Monday.
“The Justice Department will pursue those who would abuse our nation’s tax laws,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman in a press release. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”
