In a significant move, the U.S. Department of Justice has filed a legal complaint in the Northern District of Georgia, aiming to stop three tax return preparers from operating their businesses and preparing federal tax returns for others.
The complaint, filed today, also demands that the defendants return the fees they received for fraudulently prepared returns.
Defendants Accused of Fabricating Tax Returns
The civil complaint targets Mabika Ilunga, Simon Ilunga, Simon Ilunga Jr., and three businesses: Mabilus Inc. (operating as Metro Insurance and Tax Service), Big Cheez Inc.
(also doing business as Metro Insurance and Tax Service), and SN Tax Services Inc.
(likewise operating under the Metro Insurance and Tax Service name).
According to the Justice Department, these individuals and their businesses are accused of preparing false tax returns that misrepresented various financial aspects of their clients’ tax filings.
These fabricated claims included:
- Nonexistent business expenses and losses
- Inflated education and electric vehicle credits
- False unreimbursed employee business expenses
- Incorrect dependents and filing statuses
The purpose of these falsifications, the complaint alleges, was to artificially inflate customers’ refunds and increase their eligibility for the Earned Income Tax Credit.
Thousands of False Returns Filed, Causing Significant Harm
The complaint further details that between 2020 and 2023, the defendants prepared thousands of tax returns, including more than 400 returns already filed during the 2025 tax season.
The IRS reviewed returns for 34 of their clients, finding errors in 33 of them, often made without the customers’ knowledge or consent.
These false filings have not only resulted in lost tax revenue for the U.S. government but also wasted valuable resources on investigating the fraudulent returns.
The defendants’ actions have put their customers at risk, potentially facing large tax debts, penalties, and interest as a result of these fraudulent claims.
The IRS and the Ongoing Fight Against Tax Fraud
Return preparer fraud is a serious issue and one of the IRS’ “Dirty Dozen” Tax Scams.
The IRS urges taxpayers to remain cautious when selecting a tax preparer.
The agency offers guidance on choosing a reliable preparer and has created a free directory of federal tax preparers to assist individuals.
The IRS also warns about “ghost” tax preparers, who refuse to sign tax returns, which should serve as a red flag.
For individuals with an adjusted gross income of $84,000 or less, the IRS provides free online tax preparation and filing options through IRS Free File, in collaboration with private-sector partners.
Those with higher incomes can still access electronic tax forms for free.
The IRS also offers helpful resources for seniors and individuals with lower to moderate incomes who need assistance with their tax preparation.
A History of Legal Action Against Fraudulent Preparers
Over the last decade, the Justice Department’s Tax Division has secured injunctions against hundreds of dishonest tax preparers.
The department has made these cases public, and individuals who believe a business or preparer may be violating an injunction are encouraged to contact the Tax Division with information.
This latest case serves as a stark reminder of the importance of choosing a trustworthy tax preparer and staying vigilant against fraudulent practices.