The Justice Department filed a civil injunction suit Tuesday in federal court in Tyler, Texas.
The lawsuit seeks to bar Hudrell Lemontez Jones, Brenda Jackson Thomas and D&B Professional Tax Services LLC from owning or operating a tax return preparation business and preparing tax returns for others.
According to the complaint, Jones operated and prepared returns through an unincorporated business, D&B Professional Tax Services, starting in 2020 before forming D&B Professional Tax Services LLC in 2022.
Additionally, according to the complaint, Thomas has prepared returns in connection with Jones since 2020 and is an owner of or has otherwise shared in the profits generated by D&B Professional Tax Services LLC.
The complaint alleges that Jones and Thomas prepare and file tax returns that falsely reduce their customers’ taxable income and falsely increase their customers’ refunds while profiting by charging their customers substantial return preparation fees — at the expense of the Treasury.
The complaint alleges that the defendants engage in misconduct, including fabricating businesses and related business income and expenses, claiming false mortgage interest deductions, claiming fabricated COVID-19-related tax credits, and improperly concealing their status as preparers of certain returns by using the names and ID numbers of other preparers.
