Manhattan U.S. Attorney Files Civil Injunction Lawsuit To Shut Down Bronx Tax Preparer And His Company
Rafael Alvarez and his company ATAX New York LLC are accused of filing over 36,000 fraudulent tax returns between 2016 and 2019 by fabricating deductions and using deceased individuals' Social Security numbers to claim dependents, prompting a civil injunction seeking to permanently bar them from tax preparation and seize their ill-gotten profits.
Rafael Alvarez and ATAX New York LLC prepared and filed over 36,000 fraudulent federal tax returns from 2016 to 2019 by fabricating unreimbursed business expenses, charitable contributions, tuition credits, and capital loss carryovers. They also falsely claimed 'head of household' status using Social Security numbers of deceased individuals to claim non-existent dependents, generating improper tax refunds. The U.S. Attorney’s Office for the Southern District of New York filed a civil complaint seeking a permanent injunction to ban them from tax preparation and to forfeit all net profits earned through the scheme, with IRS assistance and no criminal charges disclosed.
Rafael Alvarez, as the sole member of ATAX New York LLC, and his company are accused of systematically preparing and filing over 36,000 fraudulent federal income tax returns between 2016 and 2019 for customers in the Bronx. The scheme involved fabricating unreimbursed business expenses, charitable contributions, tuition expenses, and capital loss carryovers to reduce tax liability and inflate refunds. In addition, they falsely claimed 'head of household' filing status by using Social Security numbers of deceased individuals to claim non-existent dependents, a deliberate act of identity fraud. The U.S. Attorney’s Office for the Southern District of New York filed a civil injunction lawsuit to permanently prohibit Alvarez and ATAX New York from preparing or filing any federal tax returns. The government is also seeking a court order to seize all net profits earned through this fraudulent activity, though no specific dollar amount of fraud was disclosed. The case was developed with assistance from the Internal Revenue Service and is being prosecuted by Assistant U.S. Attorneys Charles S. Jacob and Ilan Stein in the Tax and Bankruptcy Unit. No criminal charges have been announced, emphasizing the government’s use of civil enforcement to shut down predatory tax preparers and protect the integrity of the tax system.
Extracted insights
- person civil injunction lawsuit
- company filing of a civil complaint against rafael alvarez and atax new york llc
- agency the internal revenue service for its assistance with this case
- agency U.S. Attorney's Office For The Southern District Of New York
- U.S. Attorney's Office Files Civil Injunction Lawsuit
- U.S. Attorney's Office Announced Filing of a civil complaint against RAFAEL ALVAREZ and ATAX New York LLC
- U.S. Attorney Audrey Strauss said Tax return preparers who regularly cheat the tax system by preparing fraudulent federal income tax returns for their customers should not be permitted to continue in business
- The Government is seeking An injunction against ATAX NEW YORK and ALVAREZ
- The complaint asks the court To order the defendants to turn over the ill-gotten net profits they earned because of their fraudulent conduct
- Ms. Strauss thanked The Internal Revenue Service for its assistance with this case
- The case is being handled By the Tax and Bankruptcy Unit in the Office’s Civil Division
- Assistant U.S. Attorneys Charles S. Jacob and Ilan Stein are in charge Of the case
Press Release Manhattan U.S. Attorney Files Civil Injunction Lawsuit To Shut Down Bronx Tax Preparer And His Company Friday, March 5, 2021 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Audrey Strauss, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against RAFAEL ALVAREZ and ATAX New York LLC (“ATAX New York”) to prohibit them from, among other things, preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws. The complaint alleges that ALVAREZ and ATAX NEW YORK have prepared and filed fraudulent tax returns on behalf of their customers in order to reduce their customers’ tax liability and generate refunds to which those customers were not entitled. U.S. Attorney Audrey Strauss said: “Tax return preparers who regularly cheat the tax system by preparing fraudulent federal income tax returns for their customers should not be permitted to continue in business. This Office will work with the IRS to shut down return preparers who fleece the Treasury by claiming improper deductions or credits for their customers.” As alleged in the Government’s complaint filed in federal district court today: ATAX NEW YORK is a limited liability company that prepares tax returns for customers in the Bronx. ALVAREZ is a tax preparer and ATAX NEW YORK’s sole member. Together, ATAX NEW YORK and ALVAREZ prepared and filed over 36,000 federal income tax returns from 2016 to 2019 for their customers. In preparing those returns, ATAX NEW YORK and ALVAREZ knowingly prepared and filed false federal income tax returns for their customers by fabricating, among other things, unreimbursed business expenses, charitable contributions, capital loss carryovers, and tuition expenses. Many tax returns prepared and filed by ATAX NEW YORK and ALVAREZ also falsely claimed “head of household” status for their customers as part of this scheme, even by using social security numbers belonging to deceased individuals in claiming dependents. The Government is seeking an injunction against ATAX NEW YORK and ALVAREZ that would, among other things, permanently bar them from preparing or filing federal tax returns on behalf of others. The complaint also asks the court to order the defendants to turn over the ill-gotten net profits they earned because of their fraudulent conduct. * * * Ms. Strauss thanked the Internal Revenue Service for its assistance with this case. The case is being handled by the Tax and Bankruptcy Unit in the Office’s Civil Division. Assistant U.S. Attorneys Charles S. Jacob and Ilan Stein are in charge of the case. Contact James Margolin, Nicholas Biase (212) 637-2600 Updated March 5, 2021 Topic Tax Component USAO - New York, Southern Press Release Number: 21-044
Press Release Manhattan U.S. Attorney Files Civil Injunction Lawsuit To Shut Down Bronx Tax Preparer And His Company Friday, March 5, 2021 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Audrey Strauss, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against RAFAEL ALVAREZ and ATAX New York LLC (“ATAX New York”) to prohibit them from, among other things, preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws. The complaint alleges that ALVAREZ and ATAX NEW YORK have prepared and filed fraudulent tax returns on behalf of their customers in order to reduce their customers’ tax liability and generate refunds to which those customers were not entitled. U.S. Attorney Audrey Strauss said: “Tax return preparers who regularly cheat the tax system by preparing fraudulent federal income tax returns for their customers should not be permitted to continue in business. This Office will work with the IRS to shut down return preparers who fleece the Treasury by claiming improper deductions or credits for their customers.” As alleged in the Government’s complaint filed in federal district court today: ATAX NEW YORK is a limited liability company that prepares tax returns for customers in the Bronx. ALVAREZ is a tax preparer and ATAX NEW YORK’s sole member. Together, ATAX NEW YORK and ALVAREZ prepared and filed over 36,000 federal income tax returns from 2016 to 2019 for their customers. In preparing those returns, ATAX NEW YORK and ALVAREZ knowingly prepared and filed false federal income tax returns for their customers by fabricating, among other things, unreimbursed business expenses, charitable contributions, capital loss carryovers, and tuition expenses. Many tax returns prepared and filed by ATAX NEW YORK and ALVAREZ also falsely claimed “head of household” status for their customers as part of this scheme, even by using social security numbers belonging to deceased individuals in claiming dependents. The Government is seeking an injunction against ATAX NEW YORK and ALVAREZ that would, among other things, permanently bar them from preparing or filing federal tax returns on behalf of others. The complaint also asks the court to order the defendants to turn over the ill-gotten net profits they earned because of their fraudulent conduct. * * * Ms. Strauss thanked the Internal Revenue Service for its assistance with this case. The case is being handled by the Tax and Bankruptcy Unit in the Office’s Civil Division. Assistant U.S. Attorneys Charles S. Jacob and Ilan Stein are in charge of the case. Contact James Margolin, Nicholas Biase (212) 637-2600 Updated March 5, 2021 Topic Tax Component USAO - New York, Southern Press Release Number: 21-044