Justice Department Seeks to Shut Down Colorado Tax Return Preparer Filing False and Fraudulent Tax Returns for Customers

 

The United States filed a civil complaint in the U.S. District Court for the District of Colorado against Denver-area tax return preparer Daniel Mattison. The complaint seeks to enjoin Mattison from owning or operating a tax return preparation business and from preparing federal income tax returns for others.

The complaint alleges that Mattison prepared thousands of federal income tax returns for paying customers between 2018 and 2023 through his business, DCM Financial Inc. Mattison allegedly advertises his business as the “one-stop solution” for people’s tax needs, promising to help his customers and future customers get their taxes done “right.” But the complaint alleges that Mattison fails on this promise by filing tax returns for customers that are riddled with errors, fabrications and fraudulent entries. Mattison allegedly claims false tax credits, fabricates business schedules, creates bogus income and changes tax return information without the customer’s consent or knowledge to reduce taxable income and inflate refunds improperly and illegally. As the complaint states, Mattison continued to prepare and file improper and fraudulent tax returns despite repeated warnings from the IRS about Mattison’s unlawful conduct, the assessment of civil penalties against him and the temporary suspension of his Electronic Filing Identification Number (EFIN) for failing to comply with filing and payment requirements.

By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Mattison’s conduct resulting in the significant loss in tax revenue of an estimated $1.99 million in 2018 and 2019 alone.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.