The U.S. Justice Department filed a civil injunction Friday asking a federal judge to shut down an Orem tax preparation company it alleges falsified client returns that deprived the government of as much as $416 million since 2008.
The complaint alleges Sergio Fernando Sosa and his company, Sergio Centro Latino, in business since at least 1994, routinely prepared federal tax returns for individuals and corporations that made false deduction claims to lower federal tax liabilities. More than 95 percent of the 1040 returns the company prepared received a refund, a percentage higher than the national average. In 2013, the company prepared close to 7,400 returns.
On some returns prepared by Sosa, clients falsely claimed unqualified individuals as dependents and made false or inflated claims for the Earned Income Tax Credit and Additional Child Tax Credit. The falsified returns also made expense and deduction claims for fictitious business entities, under-reported income and inflated expenses of legitimate entities and failed to properly calculate self-employment tax liabilities.
Sosa previously has been penalized for violating the tax code, the department said in a press release.
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