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An Indianapolis-area tax return preparer is out of business after a federal investigation into his activities revealed an alleged “recurring pattern of fraudulent tax preparation practices.”
Chief Judge Tanya Walton Pratt issued an order this week for Juan Santiago, owner and operator of Madison Solutions LLC in Indianapolis, that permanently enjoins him from preparing federal tax returns for others and from owning or operating any tax return preparation businesses in the future.
The IRS estimated that Santiago’s fraudulent tax preparation activities had caused about $1.3 million in tax harm to the United States Treasury each year.
Indiana Lawyer attempted to reach Santiago Wednesday, but was unable to leave a message at the Madison Solutions LLC phone number listed online.
Deputy Assistant Attorney General David Hubbert of the Justice Department’s Tax Division made the announcement regarding Santiago.
According to the civil complaint filed in the case, Santiago resides in Lakeland, Florida, but travels to Indianapolis for tax preparation season to operate his tax preparation business.
Santiago failed to respond to the civil complaint filed against him, so the court entered the permanent injunction against him by default. He also refused to cooperate with the IRS in its investigation.
The civil complaint alleges that Santiago and Madison Solutions used a variety of schemes to improperly reduce their customers’ tax liabilities or to obtain tax refunds to which the customers were not entitled.
The complaint alleges that Santiago repeatedly placed false or incorrect items, deductions, exemptions or statuses on customers’ tax returns without their knowledge.
It alleges that Santiago routinely elected head of household filing status and child tax credits for customers when they were not qualified for such tax breaks.The complaint also alleges that Santiago reported fictitious businesses on customers’ returns and fabricated business expenses and income to fraudulently reduce taxable income.
Santiago has worked in the tax preparation business since 2006, but is neither an enrolled return preparer nor a certified public accountant.
The complaint alleged many of Santiago’s and Madison Solutions’s customers are non-English speaking immigrants from Mexico.
During 2020, 2021, and 2022, Santiago and Madison Solutions prepared an average of 1,026 returns per year. Santiago prepared and signed all the returns prepared through Madison Solutions in 2019, 2020, and 2021.
The case is United States of America v. Juan Santiago and Madison Solutions, LLC, 1:23-cv-1255.
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