February 5, 2013

Mayor Emanuel and Department of Business Affairs and Consumer Protection Crack Down on Fraudulent Tax Preparers

Staggering Percentage of Tax Preparers Not Following the Law Subject to Fines

Mayor's Press Office    312.744.3334

Mayor Rahm Emanuel today announced that he ordered an investigation of businesses that are helping consumers prepare tax returns and found a high number of them were not in compliance with City ordinances that are designed to protect residents.

“There is no place in Chicago for businesses to take advantage of residents, and I absolutely will not stand for it,” said Mayor Emanuel. “These businesses are scamming honest Chicagoans under the guise of helping them, which is completely unacceptable and will not be tolerated.”

In the crackdown, 93 businesses were investigated. Only three were in compliance with city regulations; a staggering 96.7 percent (90 businesses) were out of compliance. One business received a cease and desist letter; six received notices to correct their (limited business license) licensing, and 196 received Administrative Notices of Violations (ANOV’s) and will have to appear at administrative hearings. The cited violations include operating without a license, failure to provide a consumer bill of rights, operating illegally or without state of Illinois approval; and failure to provide written disclosure.

The 203 total charges could result in $201,750 in fines.


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