A Santa Clarita Valley tax preparer, Jordan Aldric Jordan, recently pleaded guilty to charges of fraudulently filing false tax returns and unlawfully obtaining COVID-19 benefits, actions that have led to significant losses exceeding $25 million for the U.S. Treasury.
The fraudulent scheme involved Jordan filing more than 1,370 federal tax returns, which reported total business losses of over $73 million. This manipulation not only inflated the perceived losses but also allowed him to secure substantial funds through various COVID-19 relief programs, including a total of $188,667 in Paycheck Protection Program (PPP) loans and $276,600 in Economic Injury Disaster Loans (EIDL).
According to sources familiar with the case, many taxpayers affected by this issue possess low and moderate incomes, which complicates their financial situations further. The National Taxpayer Advocate noted that these individuals may not even realize they are eligible for refunds or abatements of penalties and interest due to COVID-19 disaster relief.
The timeline for affected taxpayers is critical; they must file a claim for refund by July 10, 2026, to preserve their rights under the provisions set forth during the COVID-19 disaster period, defined as spanning from January 20, 2020, through July 10, 2023. A protective claim allows taxpayers to maintain their right to a refund while legal issues are being resolved.
The implications of this case extend beyond the immediate financial losses. Jordan’s actions have raised questions about the integrity of tax filings during a time when many were struggling due to the pandemic’s economic fallout. For instance, it has been reported that he reduced a married couple’s income of $2 million by claiming fraudulent expenses exceeding $1 million for non-existent businesses.
As this case unfolds, uncertainties linger regarding potential systemic issues in how tax returns were processed during the pandemic. Officials have not confirmed whether additional investigations will target other preparers or if further legal actions will be taken against those who facilitated or participated in similar schemes.
