Truck driver sentenced to prison for orchestrating $1.5 million ‘ghost preparer’ tax scheme

A truck driver was sentenced to federal prison for a “ghost preparer” scheme that caused the Internal Revenue Service (IRS) to issue $1.5 million in fraudulent tax refunds.

Truck driver Dantavious Jackson, 39, of Georgia, was sentenced to 84 months in prison after previously pleading guilty to mail fraud, according to a December 16 statement from the U.S. Attorney’s Office for the Southern District of Georgia.

Jackson was also ordered to pay over $1.5 million in restitution to the IRS.

Officials say that while owning and operating a trucking business in Union City, Georgia, Jackson also operated a “ghost” tax preparation business on the side. Jackson is considered a “ghost preparer” because he omitted his identity on forms he filed for clients, as is required by law.

The U.S. Attorney’s Office said Jackson orchestrated a scheme to defraud the United States by by preparing and filing thirty-five IRS Forms 941 for himself and two clients that falsely claimed they were entitled to receive $4,112,297 in tax refunds based on fraudulently claimed employee retention credits (ERCs).

The ERCs were part of the Coronavirus Aid, Relief, and Economic Security Act, and they were intended to encourage companies to keep employees on payroll during the COVID-19 pandemic.

Officials say that the U.S. Treasury was induced to mail $1,567,855 in fraudulent tax refunds to Jackson and his clients because of the scheme.

“Tax preparers have a responsibility to accurately prepare tax returns on behalf of their clients. Jackson not only undermined the American tax system and the trust of taxpayers relying on his expertise,” said U.S. Attorney Heap, “but he also took advantage of pandemic relief funds that were intended to help individuals harmed by the pandemic.  The sentence imposed by the Court reflects the serious nature of Jackson’s conduct.  The United States Attorney’s Office for the Southern District of Georgia works closely with our partners at IRS Criminal Investigation to protect the law-abiding American public and the treasury by stopping this fraud.”

This case was investigated by IRS Criminal Investigation