Federal Court Bars California CPA From Claiming So-Called Mariner’s Tax Deduction

WASHINGTON – A federal judge in Los Angeles has barred Martin A. Kapp, a certified public accountant from El Segundo, Calif., from preparing federal income tax returns claiming a so-called mariner’s tax deduction, the Justice Department announced today. The permanent injunction was entered by U.S. District Judge George Schiavelli of the Central District of California.

The court found that Kapp prepared returns for mariners nationwide, improperly claiming deductions for the costs of meals when their employers had given them free meals. The court said Kapp “knew or should have known” the deductions were illegal.

The court ordered Kapp to give the Justice Department a list of names, addresses, e-mail addresses, and Social Security numbers of customers for whom he claimed the deductions. The judge also ordered Kapp to post a copy of the permanent injunction on his Web sites for one year. More information about this case is available at http://www.usdoj.gov/tax/txdv06213.htm.

Since 2001, the Justice Department has sought and obtained injunctions against more than 245 tax return preparers and tax fraud promoters. More information about these cases is available on the Justice Department Web site at http://www.usdoj.gov/tax/taxpress2007.htm. More information about the Justice Department’s Tax Division can be found at http://www.usdoj.gov/tax.