United States Attorney James T. Jacks
Northern District of Texas

MONDAY, JULY 19, 2010
http://www.usdoj.gov/usao/txn/

PLANO, TEXAS, TAX PREPARER PLEADS GUILTY

Luciano Martinez Worked at “Twin Tax” Tax Preparation Business in Dallas

DALLAS — Plano, Texas, resident, Luciano Martinez, pleaded guilty this morning before Chief U.S. District Judge Sidney A. Fitzwater to two federal felony tax offenses, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Specifically, Martinez pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false and fraudulent return and one count of making a false statement on an income tax return. Each count carries a maximum statutory sentence of three years in prison, a $250,000 fine and restitution. Martinez is scheduled to be sentenced by Judge Fitzwater on October 22, 2010.

According to documents filed in the case, Martinez worked as a tax preparer for “Twin Tax,” a tax preparation business, that, according to court documents, was located in Dallas and owned by Anthony U. Barber. Last month, Barber was sentenced to 70 months in federal prison after pleading guilty to the same offenses as Martinez. Ramon Perez, of Allen, Texas, another full-time employee of Barber’s at Twin Tax, pleaded guilty in November 2009 to one count of aiding and assisting in the preparation and presentation of a false and fraudulent return. He is scheduled to be sentenced on September 9, 2010.

According to the factual resume filed in Martinez’s case, Martinez personally met with clients and prepared their tax returns based on information that he received in these face-to-face meetings. However, at Barber’s direction, Martinez would add additional deductions, namely false and inflated itemized Schedule A deductions and false Schedule C business losses, as well as tax credits, such as false Hope Education Credits, to Twin Tax clients’ tax returns without their knowledge. Even after Martinez prepared a client’s tax return, Barber would sometimes adjust the return by increasing already false and inflated credits, thereby increasing the refund. In cases involving the returns prepared by Martinez and altered by Barber, Barber also increased the return preparation fee by a corresponding amount.

According to the factual resume, a reasonable estimate of the tax loss attributable directly to Martinez’s conduct at Twin Tax is between $400,000 and $1 million.

 The factual resume also states that Martinez willfully failed to file accurate personal income tax returns. Martinez failed to report approximately $103,704 in wages from Twin Tax on his 2003 return and also failed to report wages of $323,907 on his personal tax return for 2004.

The case is being investigated by the IRS - Criminal Investigation (IRS-CI) and prosecuted by U.S. Department of Justice Tax Division Trial Attorneys Robert A. Kemins and Jed M. Silversmith and Assistant U.S. Attorney Joseph Revesz, of the U.S. Attorney’s Office in Dallas.

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