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Government Actions

United States of America v Michael Craig, both individually and doing business as Craig's Tax Service, Case No. 2:24-cv-1727-JLG-EPD

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On April 12, 2024, a civil lawsuit was filed in the United States District Court For The Southern District of Ohio Eastern Division against defendants Michael Craig, both individually and doing business as Craig's Tax Service, seeking a permanent injunction barring the defendants from participating in the business of preparing federal tax returns, employing any person acting as a federal tax return preparer, and engaging in subject to penalty under the Internal Revenue Code. The lawsuit also seeks an order requiring Mr. Craig to disgorge to the United States his receipts for preparing federal tax returns that make false or fraudulent claims. 

On April 8, 2025, a joint motion and a stipulated final judgement filed with the court states that Craig, both individually and doing business as Craig's Tax, is permanently enjoined from directly or indirectly:

- preparing or filing federal tax returns, amended returns, and other related documents and forms for anyone other than himself, or otherwise assisting in or directing the preparation or filing of the same documents

- advising, counseling, or instructing anyone about the the preparation or filing of a federal tax return, amended federal tax return, or other related federal tax document for anyone other than himself

- owning,  managing, controlling, working for, assisting, or volunteering for an entity (or division of an entity) that is in the business of preparing federal tax returns or other federal tax documents or forms for other persons; provided, however, that nothing in this judgment entry shall prohibit Craig from (i) taking any necessary steps to wind down the business operations of Craig's Tax so long as those steps do not violate the other terms of thigs injunction (ii) owning stock in any publicly traded company, regardless if such company is in the business of preparing federal tax returns or related documents, as long as Craig has no controlling or substantial interest; or (iii) regardless of whether an entity or organization is in the business of preparing federal tax returns, managing, controlling, working for, assisting, or volunteer for a separate division of such entity or organization so long as such separate division has no involvement in any of the activities described.

- advertising federal tax return preparation services through any medium, including print, online, and social media;

- assigning, transferring, using, obtaining, applying for, or renewing a preparer tax identification number (PTIN) or an electronic filing identification number (EFIN), or contesting any revocation of his EFIN(s) or PTIN(s) by the IRS;

- representing any other person in connection any matter before the IRS;

- employing any person to work as a federal tax return preparer to prepare federal tax returns for someone other than himself;

- facilitating in any manner the work of any person or entity that is in the business of preparing or filing federal tax documents or forms for others, or representing persons before the IRS, including by providing equipment or services; provided, however, that nothing in this judgment entry shall prohibit Craig from providing other ordinary commercial services in an arms-length transaction to such business so long as those services do not related to the preparation of federal taxes and are provided on the same terms and in the same manner as to other customers (e.g., delivery of office supplies or food);

- referring any person to a tax preparation firm or tax return preparer, or otherwise suggesting that a person use any particular tax preparation firm or tax return preparer;

- selling, transferring, or providing to any person some or all of the proprietary assets that Mr. Craig has generated by this tax return preparation activities, including but not limited to his customer list; and,

- engaging in any conduct that is subject to penalty under 26 U.S.C. 6694, or that substantially interferes with the administration or enforcement of the internal revenue laws.

- Pursuant to 26 U.S.C. 7402(a) and 7407, Craig must:

- prominently post at all physical locations where he currently conducts any type of business, at this own expense and within 30 days of the entry of this judgment, a copy of the judgment, as well as a sign (with dimensions of a least 12 by 24 inches) saying as follows: "Michael Craig, both individually and doing business as Craig's Tax Service, will no longer be serving as a federal tax return preparer, per Court order";

- prominently post an electronic copy of this Stipulated Judgment of Permanent Injunction and Disgorgement on any website, or social mediate site or profile, that he maintains or creates over the next five years, excluding Craig's social media that is entirely personal in nature;

- produce to counsel for the United States, within 90 days of the entry of this judgment, a list that identifies by name and address, and to the extent available by email address, telephone number, and full or partial social security number (but only if a list of full or partial social security numbers can be generated without individually checking each return) all persons for whom he prepared federal tax returns, amended federal tax returns, or claims for federal tax refund beginning at the latest with tax  year 2021 and continuing through the dare of the judgement; and,

- contact, within 90 days of the date of this judgment, either via email (if an email address is known) or otherwise via U.S. mail, all persons for whom Craig has prepared federal tax returns, amended federal tax returns, or claims for federal tax refund since since at least January 1, 2022, and enclose (i) a copy of the Stipulated Judgment of Permanent Injunction and Disgorgement with no other text, enclosures, or attachments unless approved in advance and in writing by the Department of Justice or a copy of the Complaint in this case.

- The Court, pursuant to I.R.C. 7402(a) and 7407,  hereby orders Craig, within 120 days of entry of the Court's Judgment, to file a declaration, signed under penalty of perjury, confirming that he received a copy of the judgment and complied with the terms described in paragraphs1-2 of the Stipulated Judgement of Permanent Injunction and Disgorgement.

- The United States is authorized to engage in post-judgment discovery from Craig in order to monitor his compliance with this Stipulated Judgment of Permanent Injunction and Disgorgement

- The Court retains jurisdiction over Craig and this civil action for the purpose of enforcing the terms of the injunction entered.

- With regard to Count III of the complaint, seeking disgorgement, judgment is entered in favor of the United States against Craig in the amount of $70,000.00.

- This is a final judgment that full resolves all pending claims in this case, with the parties to bear their own costs and attorneys' fees.

For more information concerning this government action, United States of America v Michael Craig, both individually and doing business as Craig's Tax Service, Case No. 2:24-cv-1727-JLG-EPD , you may wish to contact:

US Attorney's Office for the Southern District of Ohio

Columbus: (614) 469-5715

Main Office:

303 Marconi Boulevard, Suite 200

Columbus, OH 43215

https://www.justice.gov/usao-sdoh

United States District Court For The Southern District of Ohio Eastern Division

Office of the Clerk

Joseph P. Kinneary U.S. Courthouse

Room 121

85 Marconi Boulevard

Columbus, Ohio 43215

Email: [email protected]

614-719-3000

https://www.ohsd.uscourts.gov/