The Tax Division of the Justice Department has filed a large lawsuit seeking a permanent injunction to stop Nia Daniel and her business, Nia Help Service LLC, from completing federal income tax returns for other people. The case, which was filed in the Southern District of Florida U.S. District Court, is a component of the government’s larger effort to tackle tax preparer fraud, a significant problem that jeopardizes the integrity of the federal tax system.
Over 2,000 fictitious federal income tax returns are allegedly prepared by Nia Daniel between 2020 and 2024. In order to falsely inflate her customers’ returns and excessively minimize their tax payments, Daniel allegedly participated in a number of misleading tactics. These included submitting fictitious or inflated company costs on tax forms, creating fictitious firms, and fraudulently claiming tax credits such the Residential Energy Credit, Work Opportunity Tax Credit, and American Opportunity Credit. Surprisingly, a large number of these activities were completed without her clients’ knowledge or approval.
The lawsuit describes how Daniel falsified her customers’ file statuses and income statistics, which further complicates the crime. This was carried out in an attempt to unjustly raise the amounts claimed under the Earned Income Tax Credit, a refundable tax credit meant for working couples and people with low to moderate incomes, especially those who have children. Such manipulations cause the U.S. Treasury serious financial consequences in addition to breaking the law.
Daniel is accused of engaging in fraudulent actions that have a significant financial impact; in 2023 alone, the government lost over $500,000 in tax income. The government is requesting an order of disgorgement in addition to an injunction to prevent Daniel and her company from providing tax preparation services in response to these accusations. This judicial remedy aims to both punish and deter similar conduct by preventing Daniel from keeping any financial rewards obtained from her illicit activity.
In his statement, David A. Hubbert, the Deputy Assistant Attorney General of the Justice Department’s Tax Division, emphasized the gravity of the case. By eliminating dishonest tax preparers, the government has demonstrated its resolve to upholding the equity and integrity of the country’s tax system.
This action is a part of the Justice Department’s Tax Division’s broader campaign, which over the previous ten years has resulted in injunctions against hundreds of dishonest tax preparers. As one of the IRS’s “Dirty Dozen Tax Scams,” tax preparer fraud must be stopped, and here is where these efforts come in handy. The IRS frequently advises people to exercise caution when choosing tax return preparers, emphasizing the significance of confirming a preparer’s credentials and experience. The IRS offers free federal tax preparer directories and comprehensive advice on selecting a trustworthy tax expert in order to help taxpayers.
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The Justice Department also keeps an open list of people and companies that have been ordered to refrain from filing tax returns in order to encourage accountability and openness. They urge people to contact the Tax Division directly with any suspicions of injunction breaches.
To sum up, the legal proceedings against Nia Daniel and Nia Help Service LLC provide a clear reminder of the continuous difficulties caused by dishonest tax preparation methods. It emphasizes the necessity for taxpayer attention in choosing reliable tax specialists while highlighting the government’s proactive approach to protecting the tax system through legislative measures. Both the government and individuals must continue to be diligent in their efforts to stop and efficiently handle tax fraud when it develops.
