San Joaquin County Woman Sentenced to 18 Months in Prison for Defrauding the IRS of over $1.2 Million

SACRAMENTO, Calif. - Amy Evangelista, 60, of Lathrop, was sentenced today to 18 months in prison for two counts of aiding or assisting in the preparation or presentation of a false or fraudulent tax return, U.S. Attorney Eric Grant announced.

"This tax preparer betrayed her clients and the American public by creating phantom companies and fake business expenses, resulting in $1.23 million in fraudulent tax refunds," said U.S. Attorney Grant. "Her prison sentence is a reminder that we will pursue and seek punishment for those who corrupt our tax system."

"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. "Today's sentencing demonstrates IRS Criminal Investigation's unwavering commitment to protecting taxpayers and upholding the integrity of the communities we serve."

According to court documents, for the tax years from 2017 through 2020, Evangelista falsified more than a thousand of her clients' tax returns to increase the refund amounts without her clients' knowledge or consent. Evangelista reported false businesses, false income, and false expenses for her clients to the Internal Revenue Service. In one instance, Evangelista prepared a client's 2019 tax return and falsely reported $8,830 in business losses when the client did not operate any business in 2019, nor had she told Evangelista that she operated any business or had any business expenses. Additionally, there were no business records to support the false tax schedule filing except for a fraudulent Form 1099-MISC that was prepared for the client. Evangelista repeated similar conduct with respect to hundreds of her clients.

During the investigation, investigators contacted one of Evangelista's clients to inquire about the preparation of the client's return. Evangelista later told the client to lie and tell investigators that the client worked as a caregiver for a particular employer when the client did not work as a caregiver for that employer. Evangelista also prepared a false Form 1099-MISC for the client to make it appear as though the client worked as a caregiver when the client did not.

In total, Evangelista helped file approximately 1,087 fraudulent income tax returns that contained false Schedules C resulting in a loss to the IRS of approximately $1,234,430, which Evangelista was ordered to pay in restitution to the IRS.

The IRS-CI conducted the investigation. Assistant U.S. Attorney Nchekube Onyima prosecuted the case.