Choosing the wrong tax preparer can have serious consequences. A Las Vegas woman who owned a tax preparation business has been sentenced to 30 months in federal prison after admitting to participating in a scheme that sought more than $5 million in fraudulent IRS refunds, according to the U.S. Department of Justice.
Las Vegas Tax Preparer Sentenced in Multi-Million-Dollar IRS Fraud Case
Iris Hondermann owned and operated Silver State Tax & Multiservices LLC in Las Vegas. According to court documents and statements made in court, Hondermann and a codefendant prepared tax returns for clients that included false items such as fabricated business profits and losses, COVID-19 sick and family leave credits, and residential energy credits. The scheme ran from approximately 2017 through 2021.
During that period, Hondermann and her codefendant filed false returns with the IRS seeking more than $5 million in refunds that their clients were not entitled to receive. They also diverted more than $1.1 million in fraudulent tax refunds into bank accounts one or both of them controlled, according to the Department of Justice announcement.
“The deliberate falsification of tax records and the theft of funds are severe violations of public trust and federal law,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada. “Our office, alongside our law enforcement partners, remains committed to aggressively investigating and prosecuting those who use deceit to enrich themselves at the expense of taxpayers and honest institutions.”
Hondermann pleaded guilty to one count of conspiring to defraud the United States. Her codefendant, who admitted to filing false tax returns for clients as part of the same scheme, has not yet been sentenced, the announcement states.
This case was investigated by IRS Criminal Investigation and prosecuted by Trial Attorneys Thomas W. Flynn and Stuart A. Wexler of the Criminal Division’s Tax Section. The announcement was made by Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division.
For people who use paid tax preparers — including those who rely on tax preparation services for help claiming assistance-related credits — this case is a reminder that clients can be affected when preparers submit inaccurate returns on their behalf. Taxpayers who have concerns about a return filed on their behalf or who believe they may have been affected by a similar situation should contact the IRS directly or consult a qualified tax professional. Readers should verify their individual circumstances with the relevant agency rather than relying on general reporting.
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