The Department of Justice has requested an injunction preventing Winston Able of Blythewood from filing any more federal tax returns. Able fabricated tax withholding information on at least 200 of his customers' returns and then claimed large refunds, according to court documents filed Wednesday in federal court.
In the government's filing, U.S. Attorney Walt Wilkins referred to Able's tactics as a "redemption" scheme, by which proponents claim individuals should recoup money the government has wrongfully charged them.
Able, whose business was called Reclaim Services, gained customers through word-of-mouth referrals as well as at least one seminar, held last year in Columbia. That gathering for about 40 potential clients was held at the offices of Prosperity Exchange Group, run by Bill Smith, an insurance agent who prosecutors say also referred customers to Able.
At that seminar, prosecutors say Able had prospective clients summarize their expenses and told them his business could make them "private citizens," a classification he said would allow them to recover hundreds of thousands of dollars owed them by the government.
Able charged his clients between $400 and $800 to prepare their tax filings and told them to disregard any correspondence from the IRS on possible penalties.
"Able falsely assured his customers that he would resolve the assessment of any penalties," Wilkins wrote, adding that Able told clients any penalties were "part of a delay tactic by the government" to avoid paying the refunds.
As a result of his filings, the government says some of Able's clients have been assessed $5,000 penalties and could be subject to further penalties equal to 20 percent of the amount improperly claimed on their returns, regardless of whether they received a refund.
There was no answer Thursday at a number listed for Able, who prosecutors say has not offered to reimburse clients for fees paid to him or for the $5,000 penalties assessed by the government.
"Winston Able has refused to cooperate with the IRS's investigation and has shown no remorse for his actions," prosecutors wrote in their application.
In addition to preventing him from filing future tax returns, the government also says Able should no longer be allowed to act as a federal tax preparer. Prosecutors also ask that Able be required to provide the government with a list of his clients.
A California tax preparer has also been sued. Officials say the IRS paid out about $7 million as a result of more than $26 million in fraudulent claims made by Teresa Marty of Pollock Pines, Calif.
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