Owner of Idaho Falls Income Tax Preparation Business Sentenced to Federal Prison for Preparing Falsified Income Tax Returns for Clients

POCATELLO – April Carrillo, 43, of Idaho Falls, Idaho, was sentenced yesterday to nine months in federal prison, followed by one year of supervised release, for preparing false income tax returns for clients of her business, “Carrillo’s Tax Service,” U.S. Attorney Wendy J. Olson announced. Chief United States District Judge B. Lynn Winmill also ordered Carrillo to pay $93,945.00 in restitution.

Carrillo pleaded guilty to one count of assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS. According to the plea agreement, from 2009 through 2011, Carrillo and some of her employees at Carrillo’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, Carrillo 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 Carrillo’s Tax Service to generate business.

“Ms. Carrillo’s conviction and sentence make it clear that those who knowingly and falsely claim that the income tax laws do not apply to them will be prosecuted and ordered to pay,” U.S. Attorney Olson said. “I commend the fine work of the IRS criminal investigators in this case.”

“As we approach tax filing season, those who might consider preparing false tax returns should be aware of the negative consequences as evidenced with this sentence,” said Steven Osborne, IRS-Criminal Investigation Special Agent in Charge of the Denver Field Office. “Ms. Carrillo’s sentencing again emphasizes that the Internal Revenue Service and U.S. Attorney's Office will continue their aggressive pursuit of those who attempt to defraud America's tax system.”

The case was investigated by the IRS Criminal Investigations division.