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ATLANTA — Three Atlanta-area tax return preparers have been permanently barred from the tax preparation business and ordered to repay $600,000 after a federal court found they filed fraudulent tax returns that reduced clients’ tax bills through fabricated claims, authorities said.
The U.S. District Court for the Northern District of Georgia issued a permanent injunction against Mabika Ilunga, Simon Ilunga Sr., and Simon Ilunga Jr., who operated Metro Insurance and Tax Service. The order prohibits them from preparing federal tax returns, working for or owning any tax preparation business, assisting others in preparing returns, or transferring customer lists to other preparers.
The defendants agreed to the injunction and to return $600,000 in what the government described as ill-gotten gains from their tax preparation operation.
According to the government’s complaint, the preparers routinely filed false tax returns on behalf of customers by understating federal income tax liabilities. Prosecutors said the group fabricated eligibility for the Earned Income Tax Credit, invented businesses and business losses, claimed improper education and electric vehicle credits, added unreimbursed employee expenses, and falsely listed dependents and filing statuses.
“These schemes resulted in inflated refunds and reduced tax obligations for clients, at the expense of U.S. taxpayers,” officials said in court filings.
As part of the court’s order, the defendants must post a copy of the injunction at every location where they conduct business and provide a link to the order on any business website they control, notifying customers of the ban.
Federal officials said the injunction is designed to protect taxpayers and the integrity of the tax system by removing preparers who repeatedly abuse the process for profit.
The case is part of a broader enforcement effort by the government to crack down on fraudulent tax preparation practices and recover money improperly obtained through false filings.
