Woman Sentenced to Prison for $1.2M Tax Refund Fraud

A California woman has been sentenced to 18 months in prison after defrauding the Internal Revenue Service of more than $1.2 million.

Amy Evangelista, 60, received her sentence on March 19 for two counts of aiding or assisting in the preparation or filing of false or fraudulent tax returns, according to the U.S. Attorney’s Office for the Eastern District of California.

U.S. Attorney Eric Grant said Evangelista “betrayed her clients and the American public” by creating fake companies and business expenses that generated $1.23 million in fraudulent tax refunds. Authorities say she helped file around 1,087 false income tax returns containing fabricated Schedule C forms, causing a loss of $1,234,430 to the IRS.

She has also been ordered to pay restitution to the IRS.

Fraud Scheme Spanned Several Years

According to court documents, Evangelista falsified more than 1,000 tax returns between 2017 and 2020. She inflated refund amounts without her clients’ knowledge or consent.

“Her prison sentence is a reminder that we will pursue and seek punishment for those who corrupt our tax system,” Grant said.

Prosecutors said she falsely reported businesses, income, and expenses for her clients as part of the scheme.

Example of Fraudulent Activity

In one case in 2019, Evangelista prepared a client’s tax return and falsely reported $8,830 in business losses, even though the client did not operate any business that year. Authorities found no legitimate business records to support the claim, except for a fabricated 1099-MISC form she created.

Prosecutors said she repeated similar fraudulent actions across hundreds of client filings.

Attempt to Mislead Investigators

Investigators contacted one of Evangelista’s clients regarding their tax return. Authorities say Evangelista later instructed the client to lie and claim they worked as a caregiver for a specific employer, despite that not being true. She also created a false 1099-MISC form to support the claim.

Officials Warn Taxpayers

Linda Nguyen, Special Agent in Charge of IRS Criminal Investigation’s Oakland Field Office, emphasized the importance of choosing a reliable tax preparer.

“This case highlights the importance of choosing a trustworthy and qualified tax return preparer, especially during the height of tax filing season,” Nguyen said.

She added, “Today’s sentencing demonstrates IRS Criminal Investigation’s unwavering commitment to protecting taxpayers and upholding the integrity of the communities we serve.”

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