A Santa Clarita Valley tax preparer, Jordan Aldric Jordan, pleaded guilty to fraudulently filing false tax returns and obtaining COVID-19 benefits. His actions have led to significant losses—over $25 million—to the U.S. Treasury.
Jordan’s fraudulent scheme involved filing more than 1,370 federal tax returns, claiming total business losses exceeding $73 million. Many of these returns included fabricated expenses for non-existent businesses. For instance, he reduced a married couple’s reported income of $2 million with fraudulent expenses totaling more than $1 million.
The repercussions of Jordan’s actions extend beyond financial loss. Many taxpayers affected by this issue have low and moderate incomes, making them particularly vulnerable during the pandemic. The COVID-19 pandemic disrupted tax seasons, complicating many taxpayers’ ability to file on time.
Key statistics:
- Tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest due to COVID-19 disaster relief.
- Taxpayers must file a claim for refund by July 10, 2026, to preserve their rights.
- The COVID-19 disaster period is defined as January 20, 2020, through July 10, 2023.
In light of this case, many taxpayers might consider submitting a protective claim. This allows them to preserve their right to a refund while any legal issues are resolved. As Jon Wasser explains, “You’re basically telling the IRS, ‘Here’s a refund claim, put it on hold for now.'” However, this process can create confusion; many taxpayers may not even realize they are affected by the disaster relief.
Taxpayers can obtain their IRS tax account transcripts either online or by mail. This transparency can help them understand their eligibility for refunds related to the COVID-19 disaster relief efforts.
The fallout from Jordan’s actions raises concerns about accountability and the integrity of tax preparation services. As officials continue to investigate similar cases, it remains crucial for taxpayers to stay informed about their rights and available resources.
