This week, it was announced that the United States had filed a civil injunction suit in hopes of barring Phillip Mott Harris II and his Florida business, 27/4 Tax Services, from owning, operating or franchising a tax return preparation business or preparing returns for others. The complain requests that the court require Harris and the company to disgorge ill-gotten fees that they acquired from the United States Treasury through the alleged false tax return preparation.
The complaint accuses Harris and the business of preparing and filing tax returns to falsely increase their customer’s refunds and profits. The complaint alleges that Harris and his business engaged in various type of misconduct, including falsely claiming the Earned Income Tax Credit, claiming improper filing status, charging deceptive and unconscionable fees, and fabricating business income and expenses.
The complaint also alleges that Harris previously worked at LBS Tax Services. Since September of 2014, the United States has filed more than 20 similar lawsuits, including some suits against the franchisor of LBS and former employees of the company. Thanks to the lawsuits, the United States has managed to obtain permanent injunctions and money judgments disgorging millions in ill-gotten tax preparation fees.
Further details can be found here.