United States of America v. Burden

Filing 10

ORDER granting 9 --motion for default judgment and for an injunction. See order for details and deadlines; retaining jurisdiction to enforce the order; directing the clerk to ENTER JUDGMENT for the United States and against Alvin R. Burden on all counts and to CLOSE the case. Signed by Judge Steven D. Merryday on 7/10/2018. (BK)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.

CASE NO. 8:18-cv-616-T-23TGW

ALVIN R. BURDEN,
Defendant.
____________________________________/

ORDER
In this tax-fraud action, the United States alleges (Doc. 1) that Alvin Burden
knowingly or recklessly prepared tax returns that understate taxable income, that
claim deductions not available to the customers, or that elect designations (for
example, “head of household”) not applicable to the customers. On April 17, 2018,
the clerk entered a default (Doc. 8) against Burden, and the United States moves
(Doc. 9) for a default judgment and for a permanent injunction against Burden.
DISCUSSION
By defaulting, Burden admits a well-pleaded allegation of fact in the
complaint. Nishimatsu Const. Co. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir.
1978). Between 2013 and 2016, Burden prepared more than a thousand tax returns,
for which he charged between $175 and $1250. The IRS audited a representative
sample of the tax returns, and the audit revealed several mechanisms to understate a

taxpayer’s income or to claim a credit not available to the taxpayer. In several tax
returns prepared by Burden, the taxpayer claimed business losses, which reduced the
customer’s taxable income. But Burden admits that the customers operated no
business, that the customers never instructed Burden to claim a business expense, and
that the customers could not lawfully deduct the expense. In some instances, the tax
returns prepared by Burden claimed personal expenses (for example, the cost of rent
or laundry) as business expenses. Also, several tax returns prepared by Burden claim
the Earned Income Tax Credit even though no qualifying dependent lived with the
taxpayer. Again, Burden admits either knowing about the falsity of a return or
lacking a reasonable basis to invoke the Earned Income Tax Credit. Additionally,
several tax returns prepared by Burden claim an inapplicable designation. For
example, some returns claimed “head of household” status instead of “single” status,
a mischaracterization that increases the standard deduction and reduces the tax
burden. The fraudulent tax refunds caused the Treasury Department to refund to
Burden’s customers more money than the United States owed the customers.
The United States requests an injunction under 26 U.S.C. §§ 7407, 7408,
and 7402. Section 7407 authorizes an injunction against a tax preparer subject to
sanction under Section 6694, which penalizes a tax preparer’s knowingly, willfully,
or recklessly understating a taxpayer’s liability. Similarly, Section 7408 authorizes an
injunction against a person subject to sanction under Section 6701, which penalizes a
person who assists in preparing a tax return that the person knows to understate the

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taxpayer’s tax liability. Finally, Section 7402 authorizes an injunction “necessary or
appropriate for the enforcement of the internal revenue laws.”
Burden admits to a protracted scheme to prepare fraudulent tax returns, which
cost the United States (at least) tens of thousands of dollars in improper refunds.
Burden prepared more than a thousand tax returns over the past five years, and the
United States correctly observes (Doc. 9 at 11-19) that an injunction is necessary to
deter Burden’s continued preparation of fraudulent tax returns. The motion (Doc. 9)
for a default judgment and for an injunction is GRANTED.
INJUNCTION
I. Alvin Burden (and a person in active concert with Burden) must not
prepare a tax document for a person other than himself, must not assist
in preparing a tax document for a person other than himself, and must
not direct the preparation of a tax document for a person other than
himself. But Burden may prepare, assist in preparing, or direct the
preparation of a tax document for Burden’s spouse or for a minor
dependent on Burden. A “tax document” includes a federal tax return
and an amended federal tax return, whether submitted electronically or
by mail.
II. Burden must not sell, convey, assign, or transfer (except as provided
below) the list of customers for whom Burden or A&L Enterprises
prepared a tax return.
III. No later than SEPTEMBER 30, 2018, Burden:
(1) must surrender to the Secretary of the Treasury (or to the
Secretary’s delegate) every Preparer Tax Identification Number
(PTIN) used by, or assigned to, Burden.
(2) must send by certified mail, return receipt requested, the
complaint (Doc. 1) and this order to the last known address of
every person for whom Burden prepared a tax return or assisted

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in preparing a tax return after January 1, 2013. Burden must pay
for printing and mailing.
(3) must submit to the United States the name and social security
number of every customer for whom Burden or A&L Enterprises
prepared a tax return or assisted in preparing a tax return after
January 1, 2013.
(4) must affix this order conspicuously to the front door of
Burden’s office (or on the front door of the place where Burden
prepares tax returns). If Burden no longer maintains an office,
Burden must affirm under oath that Burden no longer operates an
office.
IV. No later than OCTOBER 10, 2018, Burden must submit a sworn
affidavit that affirms compliance with this injunction.
Jurisdiction is retained to enforce and to modify this order. The clerk is directed
(1) to enter judgment for the United States and against Alvin R. Burden on all counts
and (2) to close the case.
ORDERED in Tampa, Florida, on July 10, 2018.

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