Preparing fraudulent returns results in conviction for tax servicers

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FILE PHOTO: Signage is seen at the United States Department of Justice headquarters in Washington, D.C.

CORPUS CHRISTI, Texas – A tax preparer and her two daughters have admitted to conspiring to commit tax fraud over a four-year period, announced U.S. Attorney Jennifer B. Lowery.

Jeannette Villarreal, Leannette Villarreal and Zeannette Salazar prepared and filed income tax returns for clients under the business name of J&G Armadillo’s Tax Service aka Reals Tax Service.

As part of their pleas, they each admitted to one count of conspiracy to defraud the United States by willfully aiding and assisting in the preparation of false income tax returns.

On numerous occasions, they knowingly reported inaccurate earnings, fictitious charitable contributions and improper tax credits in order to increase the refund paid to the client. The tax returns purported their clients were permitted to claim deductions, credits or both. However, they were not entitled to claim more money, resulting in a tax loss to the United States.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Oct. 6. At that time, all three conspirators face up to three years in federal prison and a possible $250,000 maximum fine.

They were permitted to remain on bond pending sentencing.

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Robert D. Thorpe Jr. and John Marck are prosecuting the case.