Local tax service shut down due to allegations of false claims up to $39 million
POSTED: Tuesday, December 11, 2012 - 10:00am
UPDATED: Tuesday, December 11, 2012 - 8:56pm
BATON ROUGE, LA (NBC33) — A Baton Rouge tax return preparer and his company are accused of bilking the IRS out of millions of dollars due to false deductions. The fraud for which the company is accused is one of the “Dirty Dozen” tax scams.
The Department of Justice reports that Larry Carnell Dixon, Sr., and his business Dixon’s Tax Service, were served a civil injunction order due to allegations of reporting false deductions for its customers. Officials say these deductions generated higher refunds for customers.
The complaint also alleges that Dixon and the company “fabricated and inflated” business expense deductions for existing as well as “fictional businesses.” They accuse Dixon and his company for costing the U.S. Government as much as $39 million.
Dixon’s Tax Service, LLC has offices in Baton Rouge and Gonzales. The civil injunction was signed by Judge James Brady of the U.S. District Court for the Middle District of Louisiana.