The United States government has filed a significant complaint against an individual accused of extensive tax fraud, aiming to halt his operations permanently. On June 21, 2024, the United States of America filed a complaint in the Eastern District of Louisiana against Christopher Coburn.
The case details reveal that since approximately 2012, Coburn has been preparing federal tax returns for clients through his business entity, 1040 Tax Express. The government alleges that Coburn engaged in multiple fraudulent activities including fabricating income and expenses on tax returns to secure inflated refunds for his clients. Specifically, he is accused of falsely claiming Earned Income Tax Credits (EITC) and reporting fictitious business losses on Schedule C forms attached to customers' returns. These actions resulted in significant financial loss to the U.S. Treasury and necessitated substantial IRS resources to rectify.
In addition to these fraudulent practices, Coburn has been charged with identity theft for using names and Social Security numbers without authorization to file false tax returns. For instance, in 2016 and 2017, he allegedly filed federal income tax returns using the identity of a former customer without their consent, securing refunds totaling over $15,000 which were not received by the rightful individuals.
The complaint also highlights that Coburn's actions have caused harm beyond financial loss to the Treasury. His customers were misled into believing their taxes were being prepared correctly while they were actually exposed to potential IRS audits and penalties due to false information on their returns. Moreover, this misconduct undermines public confidence in the federal tax system and gives dishonest preparers an unfair advantage over those who comply with the law.
As part of his criminal proceedings, Coburn pleaded guilty on November 9, 2023, to making a false statement on an income tax return and was sentenced on April 16, 2024, to five years probation along with restitution payments amounting to $29,781. Despite this plea agreement which included a commitment not to prepare or file federal tax returns for others without approval from a probation officer, the government seeks further action through this civil complaint.
The United States is requesting a permanent injunction prohibiting Coburn from engaging in any form of tax preparation for others besides himself or entities where he has a legal obligation. This includes restrictions on owning or managing any business involved in tax preparation and using any federally issued identification numbers related to such activities. Additionally, they seek immediate revocation of any Preparer Tax Identification Numbers (PTIN) or Electronic Filing Identification Numbers (EFIN) associated with him.
Representing the plaintiff is Matthew L. Paeffgen from the U.S. Department of Justice’s Tax Division alongside Duane A. Evans from the Eastern District of Louisiana's U.S Attorney’s Office. The case is presided over by Judge Carl J Barbier under Case ID: 2:24-cv-01602-CJB-KWR.