A federal court in the Eastern District of New York has permanently barred Brooklyn-based defendants Keith Sang, Kashana Sang, Tareek Lewis, Kimberly Brown and their business, K&L Accounting Group Inc., from preparing federal tax returns for others.
After bringing suit in July 2021 against the defendant return preparers and business, the United States obtained a preliminary injunction from the court to stop defendants from preparing returns while the litigation was pending. In issuing the preliminary injunction, the court found that (1) all defendants acted willfully or recklessly in preparing returns that understated their customers’ true tax liabilities; (2) defendants Keith Sang and Kashana Sang interfered with the administration of the internal revenue laws by preparing paper returns that did not identify the return preparer; and (3) all defendants took “concerted and conscious steps” to evade enforcement efforts by the IRS. The defendants recently consented to entry of a permanent injunction.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) 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 $73,000. 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. 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 Tax Division with details.