POCATELLO – An Idaho Falls woman pleaded guilty to tax fraud in U.S. District Court on Tuesday.
April Carillo, 42, prepared false income tax returns for clients of her business, Carillo’s Tax Service, U.S. Attorney Wendy J. Olson said in a news release Wednesday.
Carillo admitted to telling HER clients to submit false federal income tax returns to the IRS. According to the plea agreement, the IRS estimates that from 2008 through 2012, Carillo and some of her employees at Carillo’s Tax Service submitted more than 2,500 federal falsified income tax returns. They did this by claiming tax credits their clients were not entitled to.
Specifically, Carillo and her employees would prepare tax returns that claimed the “child tax credit” and the “additional child tax credit” for taxpayers who did not qualify for them. This had the effect of increasing clients’ tax refunds, which helped Carillo generate business, according to the news release.
IRS agents raided her business after an anonymous tip in 2012. At the time, Carillo told Local News 8 she had nothing to hide.
As part of the plea agreement, Carillo agreed to pay $93,945 in restitution.
Sentencing is set for Oct. 4 before Chief U.S. District Judge B. Lynn Winmill.
Advising, assisting, and counseling in the preparation of a false income tax return punishable by up to three years imprisonment, a $250,000 fine, a term of supervised release of one year and a $100 special assessment.
“Those who intentionally submit falsified income tax returns to the IRS victimize all taxpayers because we all share the costs of paying for the improper tax refunds,” Olson said. “We will continue to work closely with the IRS to root out this illegal activity, especially where a tax preparation business assists individuals in breaking the law.”
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