Chicago Area Tax Return Preparer Enjoined from Preparing Returns for Others

On Monday, the U.S. District Court for the Northern District of Illinois issued a permanent injunction against Chicago area tax return preparer Stacy Thomas, formerly known as Stacy Sorrel, both individually and doing business as Rapid Tax Refunds LLC, Rapid Tax Refund Pros LLC, and Rapid Refunds Income Tax Service Inc. The injunction bars Thomas from preparing tax returns for others, working for or having any ownership stake in any tax preparation business, and advising anyone about the preparation of a tax return or setting up business as a preparer. Thomas agreed to the terms of the injunction.

According to the complaint, Thomas prepared and filed tax returns that falsely understated her customers' federal income tax liabilities by fabricating, among other things:

• Fictitious residential energy credits;
• Fictitious or inflated Schedule C business expenses; and
• Exaggerated or completely fabricated charitable deductions.

As a result of the court's order, Thomas must post a copy of the injunction at all locations where she conducts business and post a link to the injunction on her business's website.

Deputy Assistant Attorney General Joshua Wu of the Civil Division's Tax Litigation Branch made the announcement. Tax Litigation Branch attorney Kimberly Parke handled this matter.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its websiteLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. for choosing a tax return preparer and has launched a free directoryLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. of federal tax preparers. The IRS also offers 10 tipsLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. to avoid tax season fraud and ways to safeguard their personal information.

In the past decade, the Department of Justice has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department's website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Civil Division, Tax Litigation Branch with details.