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Wednesday, October 2, 2019

Nevada Tax Return Preparer Pleads Guilty to Tax Crimes

Admitted Causing a Tax Loss of over $3.4 Million

A Las Vegas, Nevada, tax return preparer pleaded guilty yesterday to multiple tax crimes, which caused a total tax loss of more than $3.4 million, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Michael A. Sandoval pleaded guilty to one count of tax evasion, one count of aiding and assisting in the preparation and filing of a false tax return, and one count of making and subscribing a false tax return.

According to documents filed with the court, Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). Sandoval used NFS to commit multiple tax crimes. First, when two of his clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. Second, Sandoval filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses and charitable contribution and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. Lastly, Sandoval fraudulently understated his income from NFS on his individual income tax returns for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654.

Sentencing is scheduled for Jan. 9, 2020. Sandoval faces a statutory maximum of five years in prison on the tax evasion charge and three years in prison for each of the false tax return charges. Sandoval also faces a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Press Release Number: 
Updated October 2, 2019