South Texas Tax Preparer Sentenced To Federal Prison

In Del Rio, 34-year-old John Andrew Cardenas of Uvalde, TX, was sentenced to three years in federal prison followed by one year of supervised release and ordered to pay $97,445.95 restitution to the IRS after pleading guilty to preparing fraudulent Income Tax Returns announced U.S. Attorney Robert Pitman and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steven McCollough.

Cardenas is the owner and operator of Cardenas Income Tax Service with offices in Uvalde, Crystal City, Kingsville and Corpus Christi.  On August 29, 2013, Cardenas pleaded guilty to one count of aiding and abetting the preparation of a false and fraudulent tax return.  By pleading guilty, Cardenas admitted that he knowingly and intentionally prepared tax returns for calendar years 2007, 2008 and 2009 which fraudulently claimed that the taxpayers operated fictitious businesses in order to generate larger tax refunds for the taxpayers. 

In addition to the prison term and restitution, Cardenas has expressly consented to a permanent injunction barring him from preparing, filing, or assisting in the preparation of, income tax returns in the future.

“IRS-Criminal Investigation will continue to vigorously pursue unscrupulous return preparers, such as Mr. Cardenas, who abuse their position of trust and prepare fraudulent tax returns.  These criminal actions are effectively stealing from hard-working, honest taxpayers who pay their fair share. Taxpayers expect that individuals who present themselves as qualified return preparers will prepare their tax returns accurately and with integrity,” stated IRS-CI Special Agent in Charge McCollough.

Assistant United States Attorneys Bryan N. Reeves and Jay Hulings prosecuted this case on behalf of the Government.