El Paso tax preparer indicted for underreporting income

 

Date: March 16, 2021

Contact: newsroom@ci.irs.gov

El Paso businessman, Victor Manuel Gonzalez, sole proprietor of the now-closed Tax Preparation Service, allegedly underreported his income on personal tax returns causing a tax loss of over $100,000, announced U.S. Attorney Ashley C. Hoff and Special Agent in Charge Richard D. Goss, Internal Revenue Service Criminal Investigation (IRSCI), Houston Field Office.

A federal grand jury indictment unsealed last week charges Gonzalez with three counts of filing a false federal income tax return. The indictment alleges that Gonzalez filed fraudulent returns for three years. Gonzalez claimed his income was $17,462, $18,450 and $25,328 for tax years 2014, 2015 and 2016, respectively. Court testimony today revealed that Gonzalez actually earned over $350,000 during that period. In addition to underreporting his yearly income, Gonzalez applied for and improperly received funds through the Earned Income Tax Credit (EITC). EITC is a refundable tax credit for low to moderate income workers.

Federal authorities arrested Gonzalez on March 3, 2021. During Gonzalez's detention hearing this morning, U.S. Magistrate Judge Anne T. Berton set bond at $25,000.

"Filing a tax return is one of the biggest financial transactions an average American taxpayer makes each year and the tax return preparer industry is at the dawn of a new era of accountability," said IRS Criminal Investigation Special Agent in Charge Goss. "The indictment of Victor Manuel Gonzalez demonstrates the IRS is taking extra steps this tax season, and planning more actions in future years, to help make sure people can count on their tax return preparer."

The IRSCI investigated and Assistant U.S. Attorney Michael Osterberg is prosecuting this case.