Idaho Falls woman pleads guilty to tax fraud

April Carillo, 42, of Idaho Falls, Idaho, pleaded guilty yesterday in United States District Court to preparing false income tax returns for clients of her business, Carillo’s Tax Service, U.S. Attorney Wendy J. Olson announced. Carillo pleaded guilty to a one count information filed on June 2, 2016.

Carillo pleaded guilty to assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS. According to the plea agreement filed in this case, the IRS estimates that, from 2008 through 2012, Carillo and some of her employees at Carillo’s Tax Service submitted over 2,500 federal falsified income tax returns. They did this primarily by claiming tax credits to which their clients were not entitled. Specifically, Carillo and her employees would prepare tax returns that claimed the “child tax credit” and the “additional child tax credit” for taxpayers who did not qualify for these credits. This had the effect of increasing clients’ tax refunds, which helped the Defendant to generate business. As part of her plea agreement, Carillo has agreed to pay $93,945.00 in restitution.

“Those who intentionally submit falsified income tax returns to the IRS victimize all taxpayers because we all share the costs of paying for the improper tax refunds,” Olson said. “We will continue to work closely with the IRS to root out this illegal activity, especially where a tax preparation business assists individuals in breaking the law.”

Advising, Assisting, and counseling in the preparation of a false income tax return punishable by up to three years imprisonment, a $250,000 fine, a term of supervised release of one year, and a $100 special assessment.

Sentencing is set for October 4, 2016, before Chief U.S. District Judge B. Lynn Winmill.

The case was investigated by the IRS Criminal Investigations division.