Court Orders Michigan Tax Return Preparer to Shut Down Tax Preparation Business

The U.S. District Court for the Eastern District of Michigan issued a permanent injunction against Detroit area tax return preparer Ann Heibeck and Detroit area tax return preparation businesses J&A Tax Services LLC doing business as Equitax (Equitax) and J&A Tax and Accounting Services LLC doing business as Equitax Accounting and Tax Service (J&A 2). The injunction bars Heibeck, Equitax, and J&A 2 from preparing tax returns, working for, or having any ownership stake in any tax preparation business, assisting others prepare tax returns or set up business as a preparer, and transferring or assigning customer lists to any other person or entity. The court previously entered similar judgments of permanent injunction against Tasha Washington, Crystal Patrick, Debra Washington, and Sade Cooper, after they failed to appear to defend against the United States' claims.

According to the complaint, Heibeck and Equitax prepared and filed tax returns that falsely understated their customers' federal income tax liabilities by claiming, among other things:

• Fictitious or inflated Schedule C business expenses;
• Fictitious or inflated Dependent Care expenses;
• Fictitious or inflated Education expenses; and
• Fictitious or inflated credits available under the Families First Coronavirus Response Act.

The court found that Heibeck prepared and filed thousands of false income tax returns through J&A 2, an entity she owned, using her husband's Personal Tax Identification Number. It enjoined J&A 2 as an active participant in her scheme.

As a result of the court's order, Heibeck, Equitax, and J&A 2 must post a copy of the injunction at all locations where they conduct business and post a link to the injunction on their business's website.

Deputy Assistant Attorney General Joshua Wu of the Civil Division's Tax Litigation Branch made the announcement. Tax Litigation Branch attorneys Julia Glen, Franklin Sandrea-Rivero, and Claire Shimberg handled this matter.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its websiteLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. for choosing a tax return preparer and has launched a free directoryLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. of federal tax preparers. The IRS also offers 10 tipsLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. to avoid tax season fraud and ways to safeguard their personal information.

In the past decade, the Department of Justice 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 Civil Division, Tax Litigation Branch, with details.