The Justice Department has filed a civil suit in federal court in Tampa, Fla., to shut down Madison & Sons Enterprises, a tax return preparation company operating as Madison Tax Services. The suit targets business owners Darryl J. Madison, along with Malik F. Eugene, Yvette Madison and Marlesa J. Brown, alleging they engaged in fraud to inflate customer refunds.
According to the complaint, Darryl Madison oversaw operations at Madison Tax Services, where he and his associates prepared and filed tax returns that falsified taxable income and inflated client refunds. The alleged schemes include:
- Inflating real estate costs reduce taxable income.
- Falsification of charitable donations creating unearned tax credits.
- Fabricating or exaggerating business losses reduce tax liabilities.
- Demand for residential energy credit is false for non-compliant customers.
If the court rules, Madison, Eugene, Yvette Madison and Brown will be prohibited from practicing tax preparation or filing tax returns on behalf of others.
The Internal Revenue Service (IRS) urges taxpayers to be careful when choosing tax preparers to avoid falling victim to unscrupulous practices. The IRS provides a free online directory of federal tax return preparers and offers guidance on evaluating the credentials and qualifications of tax professionals.