A Santa Clarita Valley tax preparer, Jordan Aldric Jordan, pleaded guilty to fraudulently filing false tax returns and obtaining COVID-19 benefits. His actions resulted in over $25 million in losses to the U.S. Treasury.
Jordan filed more than 1,370 federal tax returns claiming total business losses exceeding $73 million. He reported fraudulent expenses for non-existent businesses, including over $1 million for a married couple’s income of $2 million. The IRS has stated that tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest due to COVID-19 disaster relief.
Key facts about the case:
- Jordan received a total of $188,667 in Paycheck Protection Program (PPP) loans.
- He also obtained $276,600 in Economic Injury Disaster Loans (EIDL).
- The COVID-19 disaster period is defined as January 20, 2020, through July 10, 2023.
- Taxpayers must file a claim for refund by July 10, 2026, to preserve their rights.
The National Taxpayer Advocate noted that many affected taxpayers have low and moderate incomes. This creates a serious challenge. Many taxpayers may not even realize they are affected by the disaster relief.
Taxpayers can obtain IRS tax account transcripts online or by mail. A protective claim allows them to preserve their right to a refund while legal issues are resolved. Jon Wasser explained that a protective claim is like telling the IRS, ‘Here’s a refund claim, put it on hold for now.’
