Georgina Gonzalez, Tax Return Fraud Conspiracy, South Carolina 2023

COLUMBIA, SOUTH CAROLINA – In a shocking turn of events, Georgina Gonzalez, a former regional manager of multiple tax preparation business locations in Columbia, South Carolina, pleaded guilty to conspiracy to defraud the United States by preparing and filing false tax returns.

According to court documents, Gonzalez, who worked as a tax return preparer since at least 2013, conspired with others to inflate client refunds by preparing returns that falsely claimed business losses, household help income, and American Opportunity and education tax credits. The scheme, which lasted for the 2016 and 2017 tax filing seasons, resulted in a staggering tax loss of more than $420,000 to the IRS.

Gonzalez, who charged clients up to $999 for preparing each return, used her positions at various tax preparation business locations to orchestrate the scheme. Her actions not only put her clients at risk of financial and legal repercussions but also undermined the trust between taxpayers and the tax preparation industry as a whole.

U.S. District Judge Mary Geiger Lewis will determine Gonzalez’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The maximum sentence for Gonzalez’s crime is five years in prison, as well as a period of supervised release, restitution, and other monetary penalties.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Adair F. Boroughs for the District of South Carolina made the announcement, highlighting the importance of holding accountable those who engage in tax fraud and abuse the trust placed in them by their clients.

The IRS-Criminal Investigation is investigating the case, which has shed light on the vulnerabilities in the tax preparation industry. Trial Attorneys Ashley Stein, Francesca Bartolomey, and Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Winston Holliday of the District of South Carolina are prosecuting the case.

Gonzalez’s guilty plea serves as a stark reminder of the consequences of engaging in tax fraud and the importance of maintaining the integrity of the tax system. As the nation continues to grapple with the complexities of taxation, it is imperative that those who would seek to exploit the system for their own gain are held accountable.

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