The complaint alleges that the Jackson and their business, Diamond & Associates Enterprises, along with Daniels, operate “Diamond Tax Services”, which promotes a scheme involving the preparation of fraudulent federal income tax returns for customers seeking large tax refunds based on a frivolous theory called “redemption” or “commercial redemption.” 

Jackson, a minister at the Perfecting Church in Detroit, prepares tax returns claiming huge refunds based on what the Justice Department says is fabricated income-tax withholding. Jackson reportedly became acquainted with a significant percentage of his customers through the church.

The complaint said that returns prepared by Diamond Tax Services sought more than $29 million in refunds for more than 180 customers with the Jacksons requesting more than $2.5 million in refunds on their personal returns. At least $1.6 million in refunds were paid by the IRS.