{"id":52558,"date":"2023-03-22T17:07:40","date_gmt":"2023-03-23T00:07:40","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=52558"},"modified":"2023-03-22T17:07:40","modified_gmt":"2023-03-23T00:07:40","slug":"tax-preparation-co-guilty-of-preparing-almost-400-inflated-tax-returns","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=52558","title":{"rendered":"Tax Preparation Co. Guilty of Preparing Almost 400 Inflated Tax Returns"},"content":{"rendered":"<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong><span style=\"font-family: georgia, palatino;\">\u00a0LOS ANGELES\u00a0<\/span><\/strong><\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-2717 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-300x198.jpg\" alt=\"\" width=\"300\" height=\"198\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-300x198.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-1024x677.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/04\/IRS-Forms-95x64.jpg 95w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>An Orange County man pleaded guilty Wednesday to knowingly preparing nearly 400 fraudulent federal income tax returns, according to authorities.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The false filings caused a loss of more than $750,000 to the IRS by inflating his clients\u2019 tax refunds without their knowledge and then pocketing the difference between the clients\u2019 true refunds and the inflated ones.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Raudel Sandoval, 48, of Placentia, pleaded guilty to two counts of aiding and assisting in preparing false and fraudulent tax returns.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">U.S. District Judge Sherilyn Peace Garnett scheduled a September 6 sentencing hearing. <\/span><span style=\"font-size: 20px;\">\u00a0Sandoval is facing up to three years in federal prison for each count.<\/span><\/p>\n<figure id=\"attachment_7271\" aria-describedby=\"caption-attachment-7271\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-7271\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image-300x198.jpg\" alt=\"FBI Photo Image\" width=\"300\" height=\"198\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image-300x198.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image-95x64.jpg 95w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image.jpg 353w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-7271\" class=\"wp-caption-text\">FBI Photo Image<\/figcaption><\/figure>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">From 2015 through 2018, Sandoval willfully understated his clients\u2019 tax liabilities and caused a loss of $758,550 to the IRS, caused by filing at least 389 fraudulent income tax returns, officials stated.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to his plea agreement, Sandoval is a licensed tax preparer and owns RSE Sandoval Espa\u00f1a Inc., a Downey-based tax preparation company. Sandoval willfully prepared hundreds of false federal and state income tax returns for clients for the tax years 2015 through 2018. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-52124 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/thumbnail-1-300x300.png\" alt=\"\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/thumbnail-1-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/thumbnail-1-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/thumbnail-1.png 306w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>On these returns, he claimed false or inflated amounts of the child tax credit, business losses, short-term capital losses, and other items to which the taxpayer clients were not entitled.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sandoval falsified the tax returns with deductions and credits that his clients did not incur or had not informed him about. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">He also inflated the amounts of deductions and credits that his clients were entitled to claim.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When he finished preparing a tax return, Sandoval gave his clients copies of their returns that were true and correct but falsely told them that he would file their true-and-correct documents with the IRS on their behalf.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-51223 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/11\/3665164-300x160.jpg\" alt=\"\" width=\"300\" height=\"160\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/11\/3665164-300x160.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/11\/3665164-1024x547.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/11\/3665164-768x410.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/11\/3665164.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Then, Sandoval inflated his clients\u2019 returns with false and fraudulent deductions and credits and filed these false tax returns with the IRS. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The false returns showed a larger refund than the true-and-correct copies Sandoval had given to his clients.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Sandoval then directed the inflated refunds to himself. He did so by changing the bank account and routing numbers on the filed returns to a bank account he controlled.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"> Sandoval controlled more than 100 bank accounts with several different banks and opened many of the accounts in his clients\u2019 names. But he was the accounts\u2019 only authorized signor. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Several Sandoval-owned bank accounts had the name \u201cFederal Tax Refund Processing.\u201d<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Sandoval directed the IRS to send the inflated refunds through a third-party refund processor to be deposited into an account he controlled. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Other times, he caused the IRS to mail a check of the inflated refund to his business address. He then would deposit the check into one of his accounts.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">After receiving the inflated refund, Sandoval transferred a portion of it \u2013 the amount his clients were expecting to receive based on the true-and-correct tax return copies \u2013 to one of his \u201cFederal Tax Refund Processing\u201d accounts. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Sandoval then transferred that money to his clients\u2019 bank accounts, causing them to believe their refunds were from a legitimate government source.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Sandoval kept the difference between the true refund and the inflated refund.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">IRS Criminal Investigation investigated this matter.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section is prosecuting this case.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">The IRS offers tips on how to\u00a0<a href=\"https:\/\/www.irs.gov\/about-irs\/the-2023-tax-season-has-begun-irs-offers-tips-to-accurately-file-your-return\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">accurately file returns<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.irs.gov\/tax-professionals\/choosing-a-tax-professional\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">how to choose a tax return preparer<\/a>, as well as steps taxpayers can take to\u00a0<a href=\"https:\/\/www.irs.gov\/individuals\/steps-to-take-now-to-get-a-jump-on-next-years-taxes\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">get a jumpstart on filing<\/a>.<\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Taxpayers seeking assistance can access the IRS\u2019s free\u00a0<a href=\"https:\/\/irs.treasury.gov\/rpo\/rpo.jsf\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">directory<\/a>\u00a0of federal tax preparers. The IRS also has programs offering free basic return preparation for\u00a0<a href=\"https:\/\/www.irs.gov\/individuals\/free-tax-return-preparation-for-qualifying-taxpayers\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">qualifying seniors and individuals with low to moderate income<\/a>. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. <\/span><\/p>\n<p class=\"yiv6171500600MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 An Orange County man pleaded guilty Wednesday to knowingly preparing nearly 400 fraudulent federal income tax returns, according to authorities. The false filings caused a loss of more than $750,000&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-52558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Preparation Co. 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