Allegations of Tax Fraud Against Hollis

The lawsuit claims that the U.S. may have lost millions in tax revenue annually because of Hollis’ routine adjustments to clients’ debt and inflated refunds.

Hollis hasn’t responded to calls, emails, or messages on social media regarding the lawsuit. Interestingly, her public Instagram and Facebook posts didn’t mention it at all on Monday.

According to a press release from the Department of Justice (DOJ), Hollis frequently minimized her clients’ tax responsibilities by reporting false or exaggerated business expenses and claiming tax credits for non-existent education costs.

The DOJ stated, “Hollis has submitted returns claiming business expenses for clients who do not actually run a business and educational expenses for those not registered as students.” An IRS interview with a client from Tanja Tax Preparation revealed that there was no reason to believe the reported items were genuine.

The lawsuit seeks to recover all fees that Hollis and her business earned from clients for these fraudulent tax returns.

Generally, she charged clients between $175 and $500 for each return prepared.

The complaint details how IRS personnel interviewed customers linked to 47 tax returns. Several clients reportedly acknowledged that Hollis was aware of her fraudulent actions, according to the lawsuit.

Many clients expressed confusion, stating they weren’t aware of the businesses or expenses included in their returns or that they hadn’t provided that information to Hollis.

The DOJ reported that 43 fraudulent returns had resulted in the federal government reimbursing Hollis’ clients a total of $208,711.

Hollis did not manage to provide necessary documentation to support the claims on her clients’ tax returns, and the IRS agent’s attempts to contact her were unsuccessful. She reportedly received almost $39,500 in 2016 and around $24,000 in 2018 for failing to meet her obligations as a tax preparer.

The lawsuit emphasized, “The penalties did not deter Hollis’ misconduct.”

The DOJ added that Hollis’ scheme significantly impacted customers who paid substantial fees, believing they were receiving reliable tax preparation services.

The DOJ also maintains a list of individuals barred from preparing tax returns, aimed at helping to safeguard the integrity of the tax system.