Texas Tax Firm Shut Down Over $40 Million Covid Credit Scheme

A Texas-based tax preparation firm and its operators have been permanently shut down and barred from all future participation in businesses that file federal tax returns for clients.

Number 1 Tax Prep LLC, Lowetesa Petties Dewar, and Nicholas Dewar are barred from the tax preparation business for fabricating pandemic tax credits on the returns of its customers, Senior Judge Andrew S. Hanen of the US District Court for the Southern District of Texas said March 5, granting the government’s request for permanent injunction.

• The Justice Department sued the firm in August 2024, alleging it fabricated pandemic tax credits on the ...