Brooklyn tax preparer permanently shut down by Federal Court over fraud allegations
In a decisive legal move to curb tax fraud, a federal court in the Eastern District of New York has permanently banned a tax return preparer and her Brooklyn-based business from preparing federal tax returns for others and from owning, operating, or engaging in any tax return preparation business.
The preparer, Melida Portorreal, and her company, International Travel Multi & Tax Corp., were implicated in a civil complaint, alleging that they prepared and submitted fraudulent federal income tax returns for their clients. The fraudulent activities encompassed a range of schemes, including misrepresentation of filing statuses, fabrication of itemized deductions, false reporting of business expenses, and claiming non-deductible expenses to gain unwarranted access to tax credits.
The complaint put forth by the IRS estimated that the fraudulent returns filed by Portorreal for the tax years 2018, 2019, and 2020 resulted in losses to the United States exceeding $1 million each year.