In 2011, Hawk, who had previously prepared returns in Atlanta, was penalized by the Internal Revenue Service for failing to comply with due-diligence requirements when claiming the credit for clients. In a follow-up investigation last year, the IRS alleged it found ongoing failures and fraudulent claims.

The IRS says Hawk prepared at least 1,501 returns from 2009 through 2012, with unusually high refund rates ranging from 96 to 99 percent these years.