DOJ files complaint against local tax preparer alleging false claims

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Washington DC, USA-June 5, 2018: Robert F Kennedy Department of Justice building sign on stone wall

SAN DIEGO (CNS) – The Department of Justice filed a civil complaint Thursday seeking to bar a San Diego tax preparer from owning or operating tax return preparation businesses for allegedly filing returns containing false claims.

According to the complaint filed in San Diego federal court, Archibald W. Smith Jr., also known as Archie Smith, prepared and filed tax returns that resulted in deficiencies totaling nearly $1 million. Smith could not immediately be reached for comment regarding the complaint.

Through his San Diego business, which he operated under his own name and the names Ablizzia Bookkeeping and Production and ABPC Inc., the DOJ alleges he falsely understated his customers’ federal income tax liabilities by fabricating businesses and related business expenses, fabricating deductions for unreimbursed employee business expenses and charitable contributions, and overstating tax credits for solar-panel installation.

The complaint states that the IRS interviewed 37 of his clients, some of whom said they were unaware of the allegedly false information on their returns. Many of the returns alleged the clients owned or operated nonexistent businesses and listed fabricated expenses associated with those fake businesses, the complaint states.

The Department of Justice alleges this has “cost the United States lost tax revenue” and “harmed his customers, who could potentially face large income tax debts and may be liable for penalties and interest.”

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