On Monday, September 25, 2017, a federal court in Detroit, Michigan permanently barred Tax Pioneer Co. and its owner, Dieasha Davis, from operating a tax return preparation business and preparing federal returns for others. Both defendants have agreed to the civil injunction order. The suit was filed in January of 2017. It claims that Davis, who served as the manager and tax return preparer for the Liberty Tax Service franchisee, prepared fraudulent returns while at Liberty Tax Service and with Tax Pioneer.
The complaint accuses Davis and Tax Pioneer of preparing tax returns with false or exaggerated income, expenses, fraudulent dependents, inappropriate filing statuses, or false deductions. These actions were taken in an attempt to maximize the client’s refunds and refundable credits. The government also accuses Davis of encouraging one customer to submit false records to the Internal Revenue Service while being audited.
The Tax Pioneer Co. in Detroit has now been permanently barred from operating as a tax return preparation business.