A Santa Clarita Valley tax preparer, Jordan Aldric Jordan, pleaded guilty to fraudulently filing false tax returns and obtaining COVID-19 benefits, resulting in significant losses to the U.S. Treasury.
His actions led to over $25 million in losses, a staggering figure that underscores the potential for abuse within emergency relief programs. Jordan filed more than 1,370 federal tax returns, claiming total business losses exceeding $73 million. This case illustrates a troubling trend — individuals exploiting disaster relief measures designed to assist those genuinely affected.
The COVID-19 pandemic disrupted tax seasons, complicating many taxpayers’ ability to file accurately and on time. As millions faced economic hardship, some saw an opportunity for illicit gain. Jordan’s fraudulent activities included claiming $188,667 in Paycheck Protection Program (PPP) loans and $276,600 in Economic Injury Disaster Loans (EIDL), all based on fabricated business expenses.
Key facts:
- 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.
- A protective claim allows taxpayers to preserve their right to a refund while legal issues are resolved.
This case also highlights the broader implications of fraud on low-income families. Many taxpayers affected by this issue have low and moderate incomes — those who genuinely needed assistance but now face increased scrutiny from the IRS. The National Taxpayer Advocate noted the serious challenges posed by this situation; many taxpayers may not even realize they are affected by the disaster relief.
As legal proceedings continue, uncertainties linger regarding how many more cases like Jordan’s exist. Officials have not disclosed whether additional investigations are underway or if other preparers might face similar repercussions. For now, the IRS remains vigilant — monitoring claims while ensuring legitimate taxpayers receive their rightful refunds.
