The Department of Justice recently arrested a New Jersey tax preparer for allegedly seeking more than $124 million from the IRS.

Aug. 11, 2023

From the Kiplinger Consumer News Service (via TNS).

Employee retention credits have been in the news lately. The Department of Justice recently arrested a New Jersey tax preparer for allegedly seeking more than $124 million from the IRS. The multi-millions came from filings of over 1,000 false tax forms claiming the pandemic-related employee retention credit, also referred to as the ERTC or ERC.

Filing false employee retention credit claims

According to a release from the U.S. Attorney’s Office from the District of New Jersey:

• A tax preparer in New Jersey, Leon Haynes, received over $1 million in fraudulent tax refund checks from the U.S. Treasury Department.
• The Treasury also disbursed at least $31.6 million in tax refunds to Haynes’ clients based on false tax form filings.
• The preparer charged clients up to a 15% fee based on the tax refunds they received. Many of those clients reportedly paid in cash.

“While our country was fighting the spread of the virus and its profound economic impact, Haynes allegedly scammed the system in a massive scheme to line his own pockets,” U.S. Attorney Philip R. Sellinger stated in a release about the arrest.

Haynes could face up to three years in prison and a $250,000 fine for each count of aiding and assisting in the preparation of false tax returns. But the arrest highlights a growing concern...

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