T.C. Summary Opinion 2020-11 UNITED STATES TAX COURT FRIDAY O. JAMES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 12911-15S L. Filed February 27, 2020. Friday O. James, pro se. Kirsten E. Brimer, for respondent. SUMMARY OPINION GUY, Special Trial Judge: This collection review case involving a Federal tax lien was heard pursuant to the provisions of section 7463 of the Internal Revenue Code in effect when the petition was filed.1 Pursuant to section 7463(b), 1 All section references are to the Internal Revenue Code of 1986, as (continued...) -2- the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case. This matter is before the Court on respondent’s motion for entry of default judgment, as supplemented, filed pursuant to Rule 123(a). There was no appearance by or on behalf of petitioner when this case was called for trial. As discussed in detail below, the Court will grant respondent’s motion and enter a decision sustaining the collection action. Background I. Petitioner’s Tax Return Preparation Activities In 2000 Friday O. James immigrated to the United States from Liberia. He initially worked as a mathematics teacher and later as a tax return preparer for H&R Block and Liberty Tax Service. Petitioner eventually started his own tax return preparation business, operating under the name Frika Tax Services, where he and several employees prepared and electronically filed Federal income tax returns on behalf of numerous clients. 1 (...continued) amended, in effect for the years in issue. All Rule references are to the Tax Court Rules of Practice and Procedure. -3- In 2008 and 2009 (years in issue) petitioner prepared and signed approximately 2,000 Federal income tax returns and amended tax returns. The Internal Revenue Service (IRS) conducted audits and determined that (1) approximately 150 of the tax returns included an erroneous claim for the first- time homebuyer credit (FTH credit) and (2) many of the tax returns included erroneous claims for deductions on Schedule A, Itemized Deductions, and Schedule C, Profit or Loss From Business. II. IRS Civil and Criminal Investigations In September 2009 the IRS opened a civil investigation focused on petitioner’s potential liability for civil penalties related to his work as a tax return preparer. In September 2010 Revenue Agent Julie Hersh (RA Hersh) sent a letter and a detailed information document request to petitioner informing him that the IRS was investigating his potential liability for various penalties. In the meantime, in early 2010 the IRS opened a criminal investigation and interviewed several of petitioner’s clients. Some of those clients informed the IRS that petitioner had ignored or altered tax information that they had provided to him and improperly claimed the FTH credit and various deductions. -4- III. Civil Injunction In February 2011 the United States filed a civil action seeking to enjoin petitioner from preparing or filing Federal income tax returns for other taxpayers. On April 12, 2011, the U.S. District Court for the Eastern District ...
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