IRS arrests four El Paso women for alleged $90K tax scheme

Internal Revenue Service said they arrested the owner of an East El Paso tax service business Thursday morning.

Authorities accuse Belia Mendoza, 60, the owner of Mendez Tax Service, and three of her employees, of allegedly filing false tax returns to help people qualify for bigger returns. Mendez Tax Services closed in 2011.

A 22-count grand jury indictment said that Mendoza, Margarita Hernandez, Denise Duchene, and Anna Montez, allegedly prepared 1040’s that included false deductions, false business income and expenses, costing the U.S. government an estimated $90,000.

One example in the indictment said in April 2009, Mendoza allegedly filed more than $8,000 in unreimbursed expenses and $1,800 in a false education credit.

ABC-7 went to the location of the business on 10132 Sumatra by Album Park. There we found a new business, Mendez and Mendez Tax Service. It’s owned by Mendoza’s son and daughter. Robert Mendez has been in business for four years, has 1,600 clients and is not named in the indictment.

“I always tell people when they come and do their taxes with me, you know there’s three people I don’t mess around with, God, my mother and the IRS,” Mendez said. “But if you do your taxes make sure you do them right because there’s a lot of scams out there, and a lot of people that are not following the law, and obeying the law that they need to. Be careful on who you choose to do your taxes.”

The IRS said in a statement, “Today’s arrests should send a strong signal that we are putting those dishonest tax return preparers on notice that we are watching their activities closely to ensure compliance with the law.”

If convicted, Mendoza and her employees face up to eight years in federal prison.