The Justice Department has filed a civil injunction in federal court in Tampa, Florida, seeking to shut down Madison & Sons Enterprises, a tax return preparation business operating as Madison Tax Services. The suit targets the business’s owner, Darryl J. Madison, along with Malik F. Eugene, Yvette Madison, and Marlesa J. Brown, alleging they engaged in fraudulent practices to inflate customer refunds.

According to the complaint, Darryl Madison oversaw operations at Madison Tax Services, where he and his associates allegedly prepared and filed tax returns that falsely reduced taxable income and inflated customer refunds. The alleged schemes included:

Inflating real estate expenses to reduce taxable income.
Falsifying charitable donation deductions to create unearned tax benefits.
Fabricating or inflating business losses to lower tax liabilities.
Falsely claiming residential energy credits for customers who did not qualify.

If the court grants the injunction, Madison, Eugene, Yvette Madison, and Brown will be barred from operating a tax preparation business or filing tax returns on behalf of others.

The Internal Revenue Service (IRS) urges taxpayers to be cautious when selecting 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.

This article, “Justice Department Files Suit to Shut Down Florida Tax Return Preparers” was first published on Small Business Trends