Court Orders New Jersey Tax Return Preparer to Shut Down Tax Preparation Business
A New Jersey court permanently barred tax preparer Roxanna Cedeno from the industry after understating clients' tax liabilities and overstating refunds.
A federal court in New Jersey issued a permanent injunction against Newark-area tax return preparer Roxanna Cedeno, operating as RC Travel Agency, prohibiting her from preparing tax returns or holding any ownership in tax preparation businesses. The order also bars her from assisting others in preparing returns or transferring customer lists. The injunction follows allegations that Cedeno understated clients’ federal income tax liabilities and overstated refunds by claiming improper deductions and credits. The court found her conduct repeatedly violated tax laws and interfered with federal tax enforcement.
As part of the injunction, Cedeno must notify all customers for whom she prepared or assisted with federal tax returns, as well as her employees, contractors, and vendors, by sending them a copy of the court order. The U.S. Department of Justice’s Civil Division’s Tax Litigation Branch announced the decision, with attorneys Gökçe Yürekli and Adam S. Domitz handling the case. Deputy Assistant Attorney General Joshua Wu emphasized the enforcement action against unscrupulous tax preparers.
The IRS advises taxpayers to exercise caution when selecting a tax return preparer, offering resources on its website, including a free directory of federal tax preparers. The agency also provides 10 tips to avoid tax season fraud and protect personal information. The IRS has warned about the risks of working with unscrupulous preparers who may misrepresent deductions or inflate refunds.
The Justice Department has obtained injunctions against hundreds of unscrupulous tax preparers over the past decade, with details available on its website. An alphabetical list of enjoined individuals and businesses is also published. The department encourages reporting suspected violations of injunctions to the Civil Division’s Tax Litigation Branch. Similar enforcement actions have been taken against tax preparers in Michigan and Florida.