A Minneapolis tax preparer who promised clients he could unlock special credits other pros allegedly “did not know about” is now facing prison time instead of payouts. On Thursday, a federal jury convicted Cortez Hollis of preparing false federal income tax returns that prosecutors say stacked more than $1 million in bogus business losses onto client filings.
Hollis, who operated under the name Hollis Tax Time, was accused of secretly diverting portions of client refunds and charging himself hefty preparation fees, sometimes without his customers’ knowledge. Jurors found him guilty on 20 counts, and a federal judge will set his sentencing date later.
How Prosecutors Say The Scam Worked
According to a U.S. Department of Justice press release, Hollis told clients he could secure tax credits that other preparers were supposedly missing. Instead, prosecutors say, he invented sole-proprietorship businesses and inflated business losses to generate oversized refunds.
The government contends those fake losses added up to more than $1 million and that Hollis tried to pull in roughly $387,000 in improper refunds. Officials also allege he often paid himself preparation fees of $2,000 or more straight from those refunds.
The case was brought by the Justice Department’s Fraud Division, with investigative help from IRS Criminal Investigation and trial work handled by the Criminal Division’s Tax Section.
What Officials Are Saying
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division framed the case as a broader warning, stating that “no matter the scheme, the agency, or the program involved, those who cheat on their taxes for personal enrichment undermine the very foundation of public trust.”
The DOJ statement notes that IRS Criminal Investigation led the probe. Sentencing will be set by a federal judge, who must consider the U.S. Sentencing Guidelines along with other statutory factors before deciding how much time Hollis will serve and what financial penalties he will face.
Verdict, Potential Prison Time, And What Comes Next
As reported by FOX 9, Hollis was convicted on 20 counts of aiding or assisting the preparation of false tax returns. Each count carries a maximum possible sentence of three years in prison.
A sentencing hearing will be held in federal court at a later date. At that point, the judge will weigh the guidelines and statutory factors before announcing a final sentence that could include prison time, restitution, and fines.
Not The Only Local Tax Trouble
Federal prosecutors and the IRS have brought a string of similar cases in the Twin Cities in recent years, targeting preparers accused of inflating deductions or inventing fake businesses to boost client refunds.
One earlier case ended with a Ramsey tax preparer being sentenced in 2024 after authorities said he padded deductions and diverted refunds, according to a previous Hoodline report. These return-preparer fraud investigations typically require long paper trails, detailed document reviews, and coordination between IRS Criminal Investigation and U.S. Attorneys’ offices.
How To Keep Your Refund Out Of Trouble
The IRS urges taxpayers to vet anyone who touches their returns. That includes checking a preparer’s credentials, steering clear of anyone who bases their fee on a percentage of your refund, and never signing a blank return or letting someone else control the bank account where your refund lands.
For a fuller checklist of smart moves and red flags to watch for, see guidance from the IRS.
Legal Fine Print
The counts in this case involve willfully aiding or assisting the preparation of false tax returns under federal law at Cornell Law School, which makes it a felony to prepare or help prepare a fraudulent return. The statute authorizes fines and prison terms of up to three years per count.
A federal judge will ultimately set a sentencing date and determine Hollis’s punishment after reviewing the U.S. Sentencing Guidelines and other factors required by law.
