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Press Release

Tax fraud: preparer convicted of filing more than $300K in fraudulent returns

For Immediate Release
U.S. Attorney's Office, Southern District of Texas

CORPUS CHRISTI, Texas – A tax preparer has admitted her guilt for tax crimes involving fraudulent customer returns that happened over a four-year period, announced U.S. Attorney Ryan K. Patrick.

Jeanneth Iliana Escobedo was in the business of preparing income tax returns for clients under the name of BizTax, which began its business in Brownsville and later added offices in Harlingen and Corpus Christi.

Today, she pleaded guilty to one count of willfully aiding and assisting in the preparation of a false income tax return. That return included excessive deductions for medical expenses, unreimbursed employee expenses and other expenses. The false claims increased her refund to $15,405, more than what she was supposed to receive.    

As part of the plea, she also admitted to claiming similar false items on income tax returns for other clients during income tax years 2010 through 2014 and to helping other BizTax tax preparers doing the same for their customers.

Escobedo admitted the total intended tax loss was approximately $342,000.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 10. At that time, she faces up to three years in federal prison. She has agreed to pay the IRS $150,000 in restitution.

She was permitted to remain on bond pending that hearing.

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.

Updated March 5, 2020

Topic
Tax