A California woman was sentenced to 18 months in prison for defrauding the Internal Revenue Service of over $1.2 million.
Amy Evangelista, 60, was sentenced on Thursday, March 19, for two counts of aiding or assisting in the preparation or presentation of a false or fraudulent tax return, according to the United States Attorney’s Office for the Eastern District of California.
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According to U.S. Attorney Eric Grant, Evangelista “betrayed her clients and the American public” by creating fake companies and business expenses, resulting in $1.23 million in fraudulent tax refunds. She helped in the filing of roughly 1,087 fake income tax returns that included a bogus Schedule C, costing the IRS $1,234,430.
She was ordered to pay restitution to the IRS.
According to court documents, Evangelista faked over 1,000 of her clients’ tax returns between 2017 and 2020 to enhance refund amounts without their knowledge or consent.
“Her prison sentence is a reminder that we will pursue and seek punishment for those who corrupt our tax system,” Mr. Grant said.
Evangelista also falsely reported her clients’ businesses, revenue, and spending, according to authorities.
In 2019, she completed her client’s tax return and wrongly declared $8,830 in company losses, although her client did not operate any businesses that year. According to prosecutors, no business records were available to support the tax schedule filing, with the exception of a false 1099-MISC form made for the client.
Prosecutors claim Evangelista engaged in similar behavior with hundreds of other clients.
Investigators stated that they called one of Evangelista’s clients to inquire about the preparation of their tax returns.
According to prosecutors, Evangelista later instructed her client to lie and inform investigators that she worked as a caregiver for a certain business, although the client did not serve as a caregiver. A phony 1099-MISC form, which is a tax form used to report income received by independent contractors, was created for the client to make it appear as if she worked as a caretaker.
“This case highlights the importance of choosing a trustworthy and qualified tax return preparer, especially during the height of tax filing season,” said Linda Nguyen, Special Agent in Charge of IRS Criminal Investigation (IRS-CI) Oakland Field Office.
Nguyen added, “Today’s sentencing demonstrates IRS Criminal Investigation’s unwavering commitment to protecting taxpayers and upholding the integrity of the communities we serve.”
