California tax preparer sentenced to 6 years in prison for $28 million IRS scheme
A Riverside County man was sentenced to 6 years in prison on Monday, Oct. 7, for a tax return scheme that cost the IRS $28 million over a decade, the U.S. Justice Department announced.
On June 17, Corona resident Salvador Gonzalez pleaded guilty to three counts of aiding and assisting the preparation of false tax returns, a news release said.
Since 2013, Gonzalez operated Grace’s Lighthouse Resource Center Inc., a tax-preparation business in Corona. Gonzalez would instruct clients to create fake corporations and title their homes, cars and other assets in the corporation’s name. He would then refer the clients to another associate, who provided clients with a blank spreadsheet and instructed them to add their business expenses.
Under Gonzalez’s direction, clients would instead input personal expenses such as mortgage and car payments and utility bills. After receiving the spreadsheet, the associate prepared the tax return, showing a loss, federal officials said.
Gonzalez also prepared individual income tax returns, incorporating the fraudulent business losses to offset their income. He also included fake deductions like donations to charity and medical expenses, ultimately resulting in his clients paying less taxes than they actually owed.
Before 2019, Gonzalez charged $500 per tax return. Then he began charging clients 1% of their gross income for his services.
In addition to receiving a six-year sentence in federal prison, the judge ordered Gonzalez to pay $403,908 in restitution.
The U.S. Attorney’s Office – Tax Section filed a civil complaint in U.S. District Court for the Central District of California with the goal of permanently prohibiting Gonzalez from preparing or having any involvement in the preparation or filing of federal or amended tax returns, or other related documents or forms for others.