In Episode 5 of Final Notice, Jason Carr breaks down the Kerwin Aldric Jordan case, involving a California tax preparer who prosecutors said falsely claimed clients had non-existent businesses, reported more than $73 million in business losses across more than 1,370 returns, and caused more than $25 million in losses to the government.
Show Notes:
Kerwin Aldric Jordan was a California tax preparer who operated The Jordan Corporation and Jordan and Jordan A Financial Conquest. Prosecutors said he held himself out as a tax attorney and certified public accountant, even though he was neither.
In this episode of Final Notice, Jason Carr breaks down how Jordan used non-existent businesses and fake business losses to reduce clients’ taxable income. The episode also covers the COVID relief loan side of the case, where prosecutors said Jordan received PPP and EIDL funds after falsely reporting that companies had employees when they had none.
Jason explains why fake Schedule C losses create obvious audit and criminal exposure, how high-volume preparer patterns can create a data trail, and what taxpayers should do if they discover a preparer filed returns claiming businesses, losses, credits, or expenses that were not real.
This episode is for taxpayers, small business owners, tax preparers, enrolled agents, CPAs, bookkeepers, and anyone who wants to understand where aggressive tax preparation crosses into criminal tax fraud.
Key Takeaways
- A real business loss needs a real business.
- A Schedule C is not a place to park fictional expenses.
- Large preparer fees tied to large refunds should raise questions.
- Taxpayers should understand the return before signing it.
- Preparers should document intake, verify business activity, and refuse unsupported deductions.
- Fake credentials are a serious warning sign. If someone claims to be a tax attorney or CPA, verify it.
- If prior returns include false businesses, false deductions, or fake credits, review the exposure before contacting the IRS.
- When facts involve false returns, COVID relief applications, or fake records, privilege matters.
Resources Mentioned
DOJ case source: https://www.justice.gov/opa/pr/california-tax-preparer-pleads-guilty-filing-false-returns-and-fraudulently-obtaining-covid
The Law Office of Jason Carr, PLLC: https://carrtaxlaw.com