A Newark tax preparer has been permanently barred from the business, and the order also requires her to post a copy of it to every customer she ever filed a return for
Every client is getting a copy in the post.
The United States District Court for the District of New Jersey has permanently enjoined Roxanna Cedeno, a Newark area return preparer trading as RC Travel Agency, from preparing federal tax returns. The Justice Department announced the order on Friday. Alongside the bar itself the court ordered her to send a copy of the injunction to every customer whose federal return she prepared or helped prepare, and to every employee, contractor and vendor of the business.
The bar is broad. It covers preparing returns, assisting anyone else in preparing them, working for or holding any ownership stake in a tax preparation business, and transferring or assigning customer lists to anybody.
What the government alleged and what the court found
The complaint alleged that returns prepared by Cedeno and the business understated clients' federal income tax liabilities and overstated the refunds they were owed. The Justice Department names four things it says were claimed, among others: false Schedule C expenses and income losses, fraudulent education credits, improper child and dependent credits, and improper filing statuses.
Those four sit in a familiar order. Schedule C is where a preparer can invent a business, and the credits are where a return turns a liability into a payment.
The court, according to the department, found that Cedeno had "repeatedly and continually engaged in conduct" that carries a statutory penalty and that "substantially interferes with the proper enforcement and administration of the internal revenue laws." That is the finding the injunction rests on.
Deputy Assistant Attorney General Joshua Wu of the Civil Division's Tax Litigation Branch announced the order. Gökçe Yürekli and Adam S. Domitz of the same branch handled the case.
Two things are missing from the record, and they are worth naming rather than papering over. The department publishes neither the order nor the complaint with the announcement, and it gives no case number, so the figures a reader would normally want here, how many returns, over what years, for how much, are simply not on the record this item rests on. The announcement carries no response from Cedeno, and this desk obtained none.
