The Justice Department is cracking down on a Utah tax preparer accused of orchestrating a massive tax scam.
Sergio Fernando Sosa, owner of Sergio Centro Latino, has been preparing tax returns in Orem, Utah since at least 1994.
However, according to a federal complaint filed in the U.S. District Court for the District of Utah on November 1, 2013, Sosa’s returns improperly claim deductions and result in understated federal tax liabilities for his customers.
The complaint alleges that Sosa prepares federal tax returns that falsely claim unqualified individuals as dependents, and include false claims or inflated claims related to the Earned Income Tax Credit, Additional Child Tax Credit, and fictitious business entities.
He is also accused of underreporting income and inflating expenses of legitimate business entities, and failing to calculate or incorrectly calculating self-employment tax liabilities.
Despite numerous penalties being assessed against him for similar violations of the tax code, Sosa has continued to engage in this conduct.
The complaint estimates that Sosa’s actions have resulted in an estimated loss of as much as $416 million to the United States for tax returns prepared since 2008.
The Internal Revenue Service has tips for choosing a tax preparer, which can be viewed at www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013.
Related Federal Cases
Key Facts
- State: Utah
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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