Federal Fraud Complaint Filed Against Kennewick ‘Tax Guy’

A long time Kennewick Tax preparer has found himself in trouble with the U.S. Department of Justice...again.  A Federal complaint was filed in the District Court for the Eastern Washington of Washington against Don "The Tax Guy" Taylor.

Taylor is accused by the Department of Justice of filing tax returns for customers that were "riddled with errors, fabrications and fraudulent entries."

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The DOJ estimates Taylor cost the Federal Government $42 million in lost tax revenue from 2017 - 2020.

How Does Someone Cost The IRS $42 Million?

According to the complaint Taylor:

Taylor prepared false corporate and individual income tax returns by abusing the S corporation requirements under the Internal Revenue Code to reduce customers’ overall tax liabilities.

What makes this situation worse is that the complaint revealed Taylor previously been penalized twice by the IRS for "recklessly or willfully understating customers’ liabilities" from 2007 - 2010.

The complaint also alleges Taylor's conduct is serious enough that simple penalties will not suffice as he has been penalized in the past.  The 24 page complaint cites a number of customers Taylor prepared for and outlines the estimated millions Taylor cost the government in 2017, 2018, 2019, and 2020.

They also asks for Taylor to be prevented from working in any tax preparation related capacity again and to disgorge "his ill-gotten tax preparation fees."  No date has been announced for a proceeding against Taylor.  As with everyone who face accusations, Don Taylor is innocent until proven guilty.