LAS VEGAS – The owner of a Las Vegas tax preparation business was sentenced today to three years and 10 months in prison for failing to collect and pay over employment taxes to the IRS, causing a total loss to the IRS of over $9.6 million.
Jesus S. Castro (39) pleaded guilty in November 2021 to one count of failure to collect and pay over employment taxes. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Castro to three years of supervised release and ordered him to pay $399,387.87 in restitution.
According to court documents, in 2014, Castro began operating Castro Enterprise, a tax preparation business in Las Vegas also known as “Castro Enterprises” or “Castro Taxes Services.” Castro had the legal duty to withhold employment taxes on behalf of his employees and pay those funds to the IRS. From at least 2015 to 2019, however, he failed to report wages and employment taxes owed for his employees. Additionally, he filed numerous tax returns on behalf of clients with incorrect deductions and credits. In total, Castro caused a tax loss of $9,620,377.72.
Assistant U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Albert Childress of the IRS-Criminal Investigation (IRS-CI) made the announcement.
This case was investigated by the IRS-CI. Assistant U.S. Attorney Eric Schmale prosecuted the case.
You can report a tax return preparer for improper tax preparation practices, misconduct to the IRS at: https://www.irs.gov/tax-professionals/make-a-complaint-about-a-tax-return-preparer.
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