Income tax preparers sentenced for filing false tax returns

Three income tax preparers were sentenced to prison for preparing and conspiring to prepare false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas.

Belia Mendoza, 60; Margarita Hernandez, 36; and Denise Duchene, 46, were convicted on Feb. 3 following a jury trial of conspiracy to defraud the United States for their involvement in a fraudulent tax return preparation scheme and numerous counts of aiding and assisting in the preparation and filing of materially false tax returns.

“Tax return preparers owe a duty to their clients to prepare true and accurate tax returns for filing with the Internal Revenue Service (IRS),” said Acting Assistant Attorney General Ciraolo. “When preparers intentionally include false items on tax returns, they are not only violating that duty to their clients, but they are also violating the law and exposing themselves to significant penalties, including incarceration.”

“The sentencing of these three tax return preparers sends a clear warning to unscrupulous tax preparers who break the law and abuse the tax system,” said Special Agent in Charge William Cotter of the IRS-Criminal Investigation’s San Antonio Field Office. “Knowingly falsifying documents filed with the IRS is a crime and IRS-Criminal Investigation works year-round pursuing those tax preparers who enrich themselves while cheating their clients and the U.S. Treasury.”

At today’s sentencing hearing, U.S. District Judge Frank Montalvo sentenced Mendoza to 96 months in prison, followed by five years of supervised release and ordered her to pay restitution to the IRS in the amount of $35,391.

On April 15, Hernandez was sentenced to 10 months in prison, followed by three years of supervised release and ordered to pay $18,150 in restitution to the IRS. Also on Friday, Duchene was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay $2,394 in restitution to the IRS.

At today’s sentencing hearing, U.S. District Judge Frank Montalvo sentenced Mendoza to 96 months in prison, followed by five years of supervised release and ordered her to pay restitution to the IRS in the amount of $35,391.

Mendoza’s son, Robert Mendez, tells ABC-7 his mother is appealing the sentence, which he considers severe compared to other crimes. “There are child molesters and rapists who get (less time) in prison when the evidence is there.”

On April 15, Hernandez was sentenced to 10 months in prison, followed by three years of supervised release and ordered to pay $18,150 in restitution to the IRS.

Also on Friday, Duchene was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay $2,394 in restitution to the IRS.

To maximize their clients’ fraudulently claimed income tax refunds, Mendoza, Hernandez and Duchene placed materially false items on the clients’ tax returns, at times without the knowledge or consent of the clients, including false or inflated figures for un-reimbursed employee business expenses, child and dependent care expenses and education credits. Income tax returns prepared by the defendants also included false filing statuses and improperly claimed Earned Income Tax Credits.