Tax Return Preparer Gets 30-Month Federal Prison Sentence

DALLAS – A local commercial tax preparer, Rudy Contreras, was sentenced to 30 months in federal prison, following his guilty plea in November 2015 to one count of aiding and assisting in the preparation or presentation of a false or fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.

Contreras was also ordered to pay $75,221 in restitution to the Internal Revenue Service; he must surrender to the Bureau of Prisons on June 15, 2016.

According to the factual resume filed in the case, Contreras did business in Garland, Texas, as Amigo’s Taxes, located on South Garland Avenue, and then later as Priority One Taxes, located on North First Street.  Because he was not eligible to obtain an Electronic Filer Identification Number (EFIN), Contreras obtained an EFIN and a Preparer Tax Identification Number (PTIN) in his wife’s name, even though she did not work at Amigo's Taxes and did not prepare tax returns.

When IRS Special Agents conducted a search warrant in April 2012 at Amigo's Taxes, according to the factual resume, Contreras admitted that he was the only tax return preparer at the business.  Later, however, Contreras closed Amigo's Taxes and opened Priority One Taxes.  This time Contreras obtained an EFIN and PTIN in his brother's name, even though he did not work at Priority One Taxes and did not prepare tax returns. 

According to the factual resume, IRS Criminal Investigation identified 24 fraudulent tax returns, involving 17 clients, prepared by Contreras for the years 2010, 2011 and 2012, which resulted in a loss to the government of $75,221.  The 17 clients all claimed that Contreras portrayed himself as a knowledgeable and experienced return preparer, and they did not know he falsified their tax returns with false forms and false expenses.

Assistant U.S. Attorney Joseph Revesz was in charge of the prosecution.

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