The United States Department of Justice has initiated legal action against two Los Angeles tax preparers accused of filing fraudulent tax returns. The lawsuit was filed on Monday, naming Luis Alberto Mijangos and George Louis Montalvan as defendants. These individuals reportedly ran a tax preparation operation under multiple business names, including Luismi Services Inc., and CYL Professional Services, with storefronts in Koreatown and Reseda areas of Los Angeles, as per a Justice Department press release.
The suit aims to permanently bar Mijangos and Montalvan from engaging in tax preparation, filing or providing related services. Between 2019 and 2022, the duo is accused of submitting at least 1,800 federal income tax returns containing false information, leading to illicit refunds. In one cited case, a customer was charged $300 to file a return, which unbeknownst to her was altered to reflect a $3,965 refund based on fabricated dependents and education credits. The actual refund, however, never went to the client, instead, it was channeled into accounts held or controlled by Mijangos and Montalvan.
While the Justice Department's public information officer, Ciaran McEvoy, highlighted these are only allegations, the lawsuit remains clear on the objective to curb tax fraud by preventing Mijangos and Montalvan from preparing or filing tax returns permanently. According to the official statement, no decision on liability has been made yet.
In response to the prevalence of fraudulent tax preparation practices, the IRS offers resources to assist taxpayers in selecting credible tax preparers. According to their website, the IRS has launched a directory of federal tax preparers and Free File options for those with adjusted gross incomes below $79,000, and free, fillable electronic forms for those above that threshold. Over the last ten years, the Justice Department has secured injunctions against numerous disreputable tax preparers and maintains a list of enjoined individuals on its website. The case against Mijangos and Montalvan is being represented by Assistant United States Attorney John D. Ellis from the Civil Division's Tax Section.
