Santa Clarita Tax Preparer Admits Filing False Returns for Refunds

A tax preparer based in Santa Clarita Valley pleaded guilty on May 4, 2026, in the U.S. District Court for the Central District of California to filing false federal income tax returns that generated substantial refunds for clients and to fraudulently obtaining COVID-19 business-relief loans for personal use.

The fraud affected multiple clients who received inflated refunds based on false information submitted by the preparer, resulting in large tax losses to the U.S. Treasury, per the U.S. Department of Justice release. The scheme also involved COVID-19 relief loans, where the preparer obtained funds intended for business support but used them for unauthorized purposes.

The release specifies that the false returns caused substantial financial impact, though exact dollar amounts for losses and loans are not detailed in the document.

Prior to the plea, the preparer faced charges for these actions, with the case handled by the U.S. Attorney's Office for the Central District of California. Following the guilty plea, the case moves to sentencing, which will occur at a later date set by the court.

The new state establishes criminal liability, shifting from investigation and charging to conviction and potential penalties under federal statutes for tax fraud and wire fraud related to relief programs.

The guilty plea triggers a sentencing hearing where the court will determine penalties, including possible imprisonment and restitution to the U.S. Treasury for the tax losses. Federal guidelines for such offenses typically require repayment of fraudulently obtained funds, and the Department of Justice will pursue asset forfeiture if applicable.

This resolution activates Treasury Department oversight for any recovered funds, directing them back to federal coffers.

The plea follows an investigation by the Internal Revenue Service and the FBI, as detailed in the U.S. Department of Justice release. Similar tax fraud cases have increased since the rollout of COVID-19 relief programs in 2020, with the Justice Department prosecuting over 1,000 related fraud matters nationwide by 2025, per public DOJ records.