Major IRS Tax Fraud: 6-Year Sentence Imposed on Man for $28 Million Scheme
A Corona, California, man, Salvador Gonzalez, has been sentenced to 72 months in federal prison for orchestrating a tax fraud scheme that led to at least $28 million in losses to the IRS. The U.S. Attorney’s Office for the Central District of California announced Gonzalez’s sentencing, following his conviction for filing false tax returns.
Gonzalez’s Role in Fraudulent Tax Preparation
Gonzalez, 55, operated Grace’s Lighthouse Resource Center, Inc., a tax preparation business in Corona, California. He was sentenced by U.S. District Judge Jesus G. Bernal and was ordered to pay $403,908 in restitution. Gonzalez had pleaded guilty on June 17, 2024, to three counts of aiding and assisting in the preparation of false tax returns.
Scheme Details: Fake Corporations and Falsified Business Expenses
According to court documents, between 2013 and 2021, Gonzalez advised clients to set up fake corporations and title personal assets—such as homes and vehicles—in the names of these entities. He directed clients to claim fraudulent business expenses associated with these fake corporations on their tax filings. To further the scheme, an associate of Gonzalez prepared these returns using the false information provided by the clients.
Manipulating Individual Tax Returns with Fraudulent Losses
Gonzalez included these fabricated business losses on his clients’ individual tax returns, allowing them to reduce their tax liability unlawfully. He also invented personal deductions for expenses like employee costs, charitable donations, and medical bills. Gonzalez charged a flat fee of $500 per tax return, eventually increasing his rate to 1% of clients’ gross income, profiting significantly from these illegal practices.
Estimated $28 Million in Tax Losses to the IRS
The fraudulent scheme led to an estimated $28 million in tax losses to the IRS, per court records. The extent of Gonzalez’s fraudulent actions led to a civil complaint filed to permanently bar him from preparing tax returns in the future, according to the U.S. Attorney’s Office.
Sentencing Highlights Importance of Tax Compliance
The U.S. Attorney’s Office emphasized that the sentencing serves as a warning about the serious consequences of tax fraud, highlighting that intentional misrepresentation and abuse of tax laws will be met with severe penalties.
