Mexican National Convicted on 37 Counts of Preparing False Tax Returns

DENVER — Nancy Maldonado Alvarez, 43, a Mexican national, was convicted on 37 counts of aiding or assisting in the preparation of false tax returns, the U.S. Attorney’s Office for the District of Colorado announced on May 12, 2026.

The conviction covers returns prepared for an unspecified number of clients over multiple tax years. Each count corresponds to a separate false return that Alvarez helped file, according to the Department of Justice release. Federal law prohibits any person from willfully aiding or assisting in the preparation of a return that is false or fraudulent as to any material matter.

The verdict changes Alvarez’s legal status from defendant to convicted felon. Sentencing has not yet been scheduled. Under the statute, each count carries a maximum penalty of three years in prison and a $250,000 fine, though actual sentences are determined by federal guidelines that weigh factors including the total tax loss, the number of returns, and the defendant’s role.

Downstream, the conviction requires the U.S. Attorney’s Office to prepare a presentence investigation report and submit a sentencing memorandum. The court must set a date for final disposition. The Internal Revenue Service can now use the conviction record to calculate any restitution owed and to pursue civil penalties against the affected taxpayers whose returns were falsified.

Alvarez faces potential deportation proceedings after sentencing because she is a non-citizen convicted of felonies involving fraud.

This case forms part of the Justice Department’s broader initiative targeting fraudulent tax-return preparers. The department has brought similar charges in multiple districts in recent years, focusing on individuals who inflate refunds through false deductions, credits or business expenses.

The statute cited in the conviction, 26 U.S.C. § 7206(2), has produced hundreds of convictions nationwide since 2020.

The U.S. Attorney’s Office for the District of Colorado handled the prosecution. Trial evidence and the exact tax-loss amount were not detailed in the May 12 release.