A California tax preparer is set to spend six years in a federal prison after being convicted of concocting false tax returns for numerous clients. Salvador Gonzalez, a Corona-based operator of Grace’s Lighthouse Resource Center Inc., was sentenced yesterday according to court documents that have been made available.
For over a decade, Gonzalez allegedly submitted false deductions on client tax returns, including charitable contributions and medical expenses, to reduce their income tax. He instructed clients to set up fake corporations and falsely deduct personal expenses, such as mortgage, car, and utility payments, as business costs. These fabricated losses lowered the clients' individual tax bills, resulting in an estimated total tax loss to the IRS of at least $28 million.
The court didn't just issue prison time. After Gonzalez serves his term, he's mandated to also undergo a year of supervised release and to make amends by paying $403,908 in restitution to the United States. This was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division alongside U.S. Attorney Martin Estrada for the Central District of California.
The IRS Criminal Investigation led the case, with Trial Attorney Lauren K. Pope from the Justice Department’s Tax Division and Assistant U.S. Attorney Eli A. Alcaraz from the Central District of California handling the prosecution. To deter Gonzalez from future misconduct, the U.S. Attorney’s Office’s Tax Section filed a civil suit against him. As a result, Gonzalez agreed to a civil judgment that permanently prohibits him from preparing or filing federal tax returns or related documents for others.
The IRS is urging the public to be cautious of deceptive tax preparers. They have created resources on their website to help people select reliable tax preparers and provide a free directory of legitimate federal tax preparers. The IRS also offers tips on how to identify and avoid tax scams and fraud. According to the Justice Department, injunctions have been issued against hundreds of dishonest tax preparers in the past decade, and this list is available on their website.
