The U.S. Justice Department has taken legal action against a Miami Gardens-area tax return preparation business, “The Tax Doctor LLC,” and its associates, including owner John L. Gay Jr., Tammi King, and Norman G. Williams Jr., for allegedly preparing fraudulent tax returns. A complaint filed in the U.S. District Court for the Southern District of Florida seeks to prevent these individuals and their businesses from operating as tax preparers in the future. Simultaneously, the United States has requested a preliminary injunction to immediately halt their tax preparation activities during the ongoing legal proceedings.
This civil lawsuit not only targets Gay, King, and Williams Jr. but also aims to recover the fees they allegedly obtained through misconduct. According to the complaint, John L. Gay Jr. owns and operates “The Tax Doctor LLC,” with three locations in the Miami Gardens area. The business also has two franchises, managed by Tammi King under the names Kingsworld Financial Services Inc. and Brightstar Management Corp., located in Miami and Ft. Lauderdale. Norman G. Williams Jr. is accused of working as a tax preparer under King’s franchises as a secondary job.
The core allegation is that these defendants systematically manipulated taxpayer returns in Florida, often without the taxpayers’ awareness, to illegally reduce their tax liabilities or qualify them for unwarranted tax credits. The methods detailed in the complaint include fabricating various deductions and credits, such as:
- False Charitable Contributions: Inflating or creating charitable donations where none existed.
- Unreimbursed Employee Expenses: Claiming employee expenses that were not actually incurred or eligible.
- Residential Energy Credits: Falsely claiming credits for energy-efficient home improvements.
- Head-of-Household Filing Status: Improperly claiming head-of-household status to gain more favorable tax rates.
- Fabricated Business Income or Expenses: Creating fictitious business income or expenses to inflate Earned Income Tax Credit (EITC) claims.
The Justice Department asserts that these deceptive practices led to a significant loss of tax revenue for the United States, amounting to millions of dollars.
A striking example highlighted in the complaint involves Norman G. Williams Jr. allegedly claiming over $1.3 million in fabricated or inflated charitable contributions for 96 fellow firefighters in 2020 alone. Consequently, these firefighters, along with numerous other clients of the defendants, now face the burden of repaying the wrongly claimed tax refunds, along with penalties and interest.
Tax preparer fraud remains a persistent issue, consistently listed among the IRS’s “Dirty Dozen Tax Scams.” Taxpayers are urged to exercise caution and vigilance when selecting a tax professional. The IRS provides resources on its “website” to guide individuals in choosing a reputable tax preparer. Furthermore, the IRS offers a “free directory” of federal tax preparers for easy access to verified professionals. For those with an adjusted gross income under $72,000, “IRS Free File” offers free online tax preparation and filing options through IRS partner websites. Even for those exceeding this income threshold, IRS Free File provides access to electronic federal tax forms that can be completed and filed online at no cost.
The Tax Division has a long-standing commitment to combating tax preparer fraud, having secured injunctions against hundreds of unscrupulous tax preparers over the past decade. Details on these cases are publicly available on the Justice Department “website.” A comprehensive list of individuals and businesses barred from preparing tax returns or promoting tax schemes can be found on “this page.” Anyone suspecting that an enjoined person or business is violating an injunction is encouraged to “contact the Tax Division” with relevant information.
