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U.S. Sues to Bar NCK From Tax Preparation

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Kathy M. Kristof

The Justice Department filed suit Thursday to bar Rialto-based NCK Services Inc. and four of the company’s tax preparers from preparing federal income tax returns. The suit, filed in U.S. District Court in Los Angeles, alleges that NCK has repeatedly inflated deductions for mortgage and business expenses. As a result, the company’s 10,000 clients have paid an average of $2,230 too little in federal income taxes.

The IRS estimates that the improper tax claims have cost the government about $20 million.

NCK executives could not be reached for comment.

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Kathy M. Kristof

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