In a significant crackdown on tax fraud, the Justice Department’s Tax Division has taken legal action against Niclas Pierre and Elius Bessard, targeting not only the individuals but also their tax return preparation enterprises. Through a civil injunction suit, the Department seeks to permanently prevent Niclas Pierre and Elius Bessard from preparing federal tax returns for third parties.
Allegations of Extensive Fraud by Niclas Pierre and Elius Bessard
The complaint outlines a staggering revelation: Niclas Pierre and Elius Bessard have been implicated in the preparation and submission of more than 8,000 federal income tax returns since 2018. The Justice Department’s investigation reveals a pattern of deceit, alleging that the duo employed a myriad of deceptive tactics to fabricate deductions and credits, often unbeknownst to their clients. Among the schemes uncovered were the falsification of business expenses to inflate refunds, the fabrication of losses from purported sales of personal investments and business assets, and the illicit claiming of tax credits, including but not limited to the Residential Energy Credit and the American Opportunity Credit. Such deliberate actions not only undermine the integrity of the tax system but also victimize unsuspecting taxpayers.
Layers of Deception
The complaint exposes additional layers of deception, detailing how Niclas Pierre and Elius Bessard meticulously concealed their fraudulent endeavors. Rather than openly acknowledging their involvement, they deliberately omitted their identities as return preparers on the filed tax returns. Instead, they attributed the preparation to another individual or entirely neglected to provide preparer information. This deliberate obfuscation not only camouflaged their wrongdoing but also exacerbated the difficulty in assessing the full extent of losses to the U.S. Treasury, which is believed to amount to millions of dollars. Such calculated concealment underscores the sophistication of their illicit operations and the challenges faced in uncovering them.
Preventive Measures
To prevent tax fraud, taxpayers should thoroughly research preparers, ensuring they’re licensed and reputable. Avoid tax preparers who do not sign the returns they prepare. Scrutinize returns meticulously before submission, questioning any discrepancies. Safeguard personal information to thwart identity theft and phishing attempts. Stay informed about common scams and tax law changes, utilizing IRS resources for guidance. Report any suspicious activity promptly to the relevant authorities for investigation. These proactive measures mitigate the risk of fraud and ensure compliance with tax laws, promoting financial security and peace of mind for taxpayers during tax season and beyond.
Government’s Response
Deputy Assistant Attorney General David A. Hubbert, representing the Justice Department’s Tax Division, has highlighted the government’s resolute stance against tax fraud perpetrators. With unwavering determination, the government is dedicated to pursuing those who undermine the integrity of the tax system. Seasoned attorneys from the Tax Division have been tasked with handling the case, demonstrating the gravity with which the government regards such fraudulent activities. This robust response reflects a steadfast commitment to upholding justice and safeguarding the nation’s fiscal well-being.
IRS’s Vigilant Advisory
In response to the unfolding case of Niclas Pierre, the IRS has issued a renewed advisory urging taxpayers to maintain vigilance against deceitful tax preparers. Offering extensive resources on its website, the IRS assists individuals in discerning reputable preparers. Additionally, it cautions against the risks posed by “ghost preparers” who evade signing tax returns, exposing taxpayers to potential fraud. This advisory emphasizes the importance of due diligence in selecting tax professionals and highlights ongoing efforts to safeguard taxpayers from unscrupulous practices during the tax preparation process.
As taxpayers gear up for the approaching tax season, the imperative to select trustworthy preparers becomes increasingly apparent. Collaborating with reputable professionals ensures that financial matters are handled with the utmost integrity. The Justice Department’s decisive action against Niclas Pierre and Elius Bessard serves as a potent warning to other preparers considering fraudulent practices. By vigorously pursuing the shutdown of these operations and the recovery of lost funds, the Department reaffirms its steadfast commitment to preserving the integrity of the tax system and promoting fairness for all taxpayers.
