Utah CPA Barred from Tax Prep for $393 Million in Fraudulent Returns

Submitted by Melissa Hoffmann on Tue, 04/27/2010 - 16:34

A federal court in Salt Lake City has permanently barred Dick Jenkins, a CPA from Heber City, Utah, from preparing tax returns for others, the Department of Justice (DOJ) announced.

U.S. District Judge Dale A. Kimball entered the civil injunction order, finding that Jenkins requested more than $393 million in fraudulent income tax refunds for customers using "a tax fraud scheme that involves filing fraudulent federal income tax returns and other frivolous documents with the IRS on behalf of his customers."

The court found that Jenkins requested at least 20 fraudulent refunds using his tax scheme, which is based on the frivolous contention that secret accounts exist that can be accessed to pay these bogus refund claims. For example, court papers filed in the case alleged that Jenkins requested a single $210 million dollar fraudulent refund for one customer, and a $402,920 bogus refund for himself. At least $294,292 in fraudulent refunds were actually issued to Jenkins's customers. The court permanently barred Jenkins from preparing returns and providing any other tax-related services because "Jenkins's conduct results in irreparable harm to the United States," according to the DOJ's release.

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