Florida tax preparer to shutdown business over tax scam

FLORIDA, United States – A Florida tax preparer, Karla  Welch and her businesses, Karla R. Welch LLC and Kwik Services LLC are to be shut and stopped  from owning or operating a tax preparation business and preparing tax returns over tax scams, Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division  has announced.

A complaint, filed in the U.S. District Court for the Middle District of Florida, alleges that Welch, through Karla R. Welch LLC and Kwik Services LLC, owns and operates a tax preparation business with as many as 12 stores in Florida, Georgia and North Carolina.

The complaint is seeking the defendants to disgorge the fees they obtained by preparing false and fraudulent tax returns.

According to the complaint, Welch and her businesses prepare and file tax returns to falsely increase their customers’ refunds, and profit through high and often undisclosed preparation fees at the expense of their customers and the Treasury.

The complaint alleges that the defendants prepared returns for customers that falsely claim the Earned Income Tax Credit; Report fabricated businesses and related business income and expenses; Report fabricated deductions, including for purported job-related expenses and in addition claim false education credits

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant.

 The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.