WASHINGTON – A federal court in Los Angeles has issued permanent injunctions barring a Torrance, Calif., tax preparer, Susan Guan and her company, SRN Financial Services Inc., from preparing tax returns for others, the Justice Department announced Friday.
The government had alleged, in the civil case, that Guan and SRN promoted a tax-fraud scheme designed to siphon millions of dollars from the U.S. Treasury. Guan allegedly requested a total of $4.5 million in fraudulent refunds.
Guan and her firm allegedly filed a series of false IRS forms, including tax returns, amended returns, and IRS Forms 1099-OID to request fraudulent tax refunds based on phony claims of large income tax withholding, according to the complaint. For one of her customers, Susan Guan allegedly requested an $851,786 fraudulent refund on a false amended tax return with 16 bogus Forms 1099-OID to support the refund request. The Internal Revenue Service catches the majority of bogus redemption-scheme tax returns and blocks the claimed refunds, according to the Justice Department’s press release.
Justice Department trial attorney Grayson A. Hoffman handled the case, and IRS senior technical advisor Shauna Henline, conducted the investigation.