Justice Department Sues New Orleans-Area Tax Preparation Business and Related Preparers to Stop Alleged Tax Preparation Fraud

The Justice Department filed a civil injunction suit today in federal court in New Orleans to bar Unnisha Paige, Rosetta Jones, Capriata Oatis, Keyante St. Cyr, Leah Smith, Laporscha Thompson, Deshira Horton, and India Toppins, who do business as Paige’s Income Tax Services (Paige Tax), from preparing tax returns for others and owning or operating a tax preparation business. The complaint also requests that the court require the defendants to disgorge the return preparation fees they obtained by preparing allegedly false or fraudulent tax returns.

According to the complaint, Paige franchises Paige Tax stores and is a full or partial owner of each franchise location. The complaint further alleges that Paige sells tax preparation software and provides training to individuals seeking to start their own tax preparation business. The complaint asks the court to bar Paige from selling or licensing a tax preparation business or franchise and tax preparation software.

The complaint alleges that the defendants, and those acting at their direction, prepare and file tax returns to falsely increase their customers’ refunds, and they profit through high and often undisclosed preparation fees — at the expense of their customers and the U.S. Treasury. According to the complaint, the defendants and those acting at their direction engage in misconduct, including:

• Falsely claiming the Earned Income Tax Credit
• Fabricating businesses and related business income and expenses reported on Forms Schedule C
• Claiming false fuel tax credits
• Claiming false child and dependent care credits
• Claiming fabricated COVID-19-related tax credits

The Tax Division reminds taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.

In the past decade, the Justice Department’s Tax Division has obtained civil injunctions and criminal convictions 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 Tax Division with details.