Justice Department Sues Arizona Tax Preparation Business and Owners for Fraudulent Activity, Seeks Permanent Injunction

A tax preparation business in Arizona and its owners have been sued by the Justice Department for alleged fraudulent activity. The request for a permanent injunction aims to dismantle Golden Heart Tax Services, prevent the defendants from operating a tax preparation business or preparing tax returns, and seek a court order for the return of preparation fees earned through allegedly fraudulent or false returns.

The defendants named in the injunction are Mayuen Ajak, Yier Deng, Bol Guot, and Gabriel Kuot, along with Golden Heart Tax Services LLC. The business is currently operating in four states – Arizona, Texas, Missouri, and Nebraska – with its founding taking place in Texas in 2018.

The complaint accuses the defendants of falsifying tax returns to increase customer refunds and profiting through undisclosed preparation fees. They allegedly claimed false fuel, COVID-related, education, and earned income tax credits as well as fabricating business-related incomes. Many of the defendants’ clients are immigrants who have little knowledge of US tax laws and are targeted by the defendants for their services.

According to IRS estimates, approximately $10 million was lost due to the defendants’ alleged misconduct resulting in underreported income or unpaid taxes. To help taxpayers avoid unethical tax preparers, the IRS has provided information on its website on how to choose a reputable tax return preparer and offers a directory of approved providers. Follow @KTAR923 for updates and news on this developing story. If you have any tips or story ideas about this case or any other topic please reach out to our KTAR News team