‘Ghost Preparer’ Must Pay Gains From Fraudulent Tax Business

A “ghost preparer” whose tax preparation business was shuttered for fraud must disgorge to the IRS her $136,875 in ill-gotten gains from helping customers claim fictitious credits and deductions, a federal court ruled.

The IRS sued Kenia Rodriguez for engaging in a fraudulent tax preparation method, known as ghost preparing, where she would style her customers’ returns as self-prepared and not identify herself as the preparer using an electronic filing identification number. The agency brought a civil suit against Rodriguez and her business, Rodriguez Tax Services, after an investigation that began in 2019.

• The investigation found that Rodriguez consistently engaged ...