IRS Shuts Down Fraudulent Tax Preparation Business in Arizona with Permanent Injunction

Arizona Justice Department Files Permanent Injunction Against Tax Preparation Business and Its Owners for Fraud

The Justice Department has filed a request for a permanent injunction against Golden Heart Tax Services, its tax preparers, and owners Mayuen Ajak, Yier Deng, Bol Guot, and Gabriel Kuot. The lawsuit accuses the defendants of fraudulent activity related to tax preparation.

The complaint alleges that the defendants falsified tax returns to increase customer refunds and profit from undisclosed preparation fees. They claimed false fuel, COVID-related, education, and earned income tax credits as well as fabricated business-related incomes. Many of their clients are immigrants who have little knowledge of US tax laws and were targeted by the defendants for their services.

The IRS estimates that approximately $10 million was lost due to the defendants’ alleged misconduct resulting in underreported income or unpaid taxes. To help taxpayers avoid unethical tax preparers, the IRS provides information on its website on how to select a reputable tax return preparer and offers a directory of approved providers.