A truck driver from Union City, Georgia, has pleaded guilty to mail fraud in connection with a scheme to defraud the United States by falsely claiming COVID-19-related employment tax credits. Dantavious Jackson, 39, admitted to executing the fraudulent scheme and now faces up to 20 years in prison, along with supervised release, restitution, and monetary penalties. This information was shared by Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia.
Jackson owned a trucking business and operated a side business preparing tax forms for others. As per regulations, any individual preparing federal tax returns for a fee must obtain a preparer identification number (PTIN) from the Internal Revenue Service (IRS). However, Jackson did not comply with this requirement when filing returns for clients.
The CARES Act provided an employee retention credit (ERC) to encourage businesses to retain employees during the pandemic. Employers could claim this refundable tax credit by filing IRS Form 941 for relevant quarters.
Between June 2022 and August 2023, Jackson prepared and filed thirty-five IRS Forms 941 that falsely claimed $4,112,297 in refunds based on non-existent employees and wages. This led to the U.S. Treasury issuing $1,567,855 in fraudulent refunds.
Jackson acted as a "ghost preparer," meaning he did not include his PTIN or other identifying information on the returns he filed for clients.
Special Agent in Charge Demetrius Hardeman of IRS Criminal Investigation's Atlanta Field Office stated: "Jackson’s guilty plea serves as a reminder to those who committed fraud on programs under the CARES Act that they will be held accountable." He added that investigations are ongoing into those who misappropriated funds intended for American workers and businesses.