Justice Department Sues Garden City Tax Preparer

The U.S. Justice Department has sued the owner of a Garden City tax preparation business, alleging that his clients owe more than $2 million in unpaid taxes.

in U.S. District Court. It seeks to permanently bar him from the tax-preparation business.

The complaint alleges Lares claimed false dependent exemptions and false filing statuses on customers’ returns. It says IRS audits showed an average tax loss of more than $6,000 per return.

The business marketed its services to Garden City’s Spanish-speaking community. The suit contends many of his clients were recent Mexican immigrants with little knowledge of U.S. tax laws.