Riverside County man sentenced to six years for tax fraud scheme

RIVERSIDE, California — A Riverside County man has been sentenced to six years in federal prison for preparing and filing false tax returns, resulting in a $28 million tax loss to the IRS, the Justice Department announced. Salvador Gonzalez, of Corona, was also ordered to pay $403,908 in restitution.

Gonzalez, who pleaded guilty to three counts of aiding and assisting in the preparation of false tax returns, operated Grace’s Lighthouse Resource Center, Inc., a tax return-preparation business based in Corona. From 2013, Gonzalez directed clients to create phony corporations and title their assets under these entities, according to court documents. He then referred clients to an associate to prepare fraudulent business tax returns, which showed losses that reduced clients' individual income taxes.

To further decrease clients' tax liabilities, Gonzalez fabricated deductions on personal returns, including unreimbursed employee expenses and charitable contributions. He charged clients a flat fee of $500 per return, later switching to 1% of their gross income in 2019.

The U.S. Attorney’s Office filed a civil complaint seeking to permanently bar Gonzalez from preparing or filing federal tax returns for others. The complaint alleges Gonzalez's actions have harmed the United States, the IRS, his customers, and the public.

The IRS advises taxpayers to be cautious of unscrupulous tax preparers and offers resources on its website for choosing a reliable tax return preparer. The Justice Department has obtained injunctions against hundreds of fraudulent tax preparers in the past decade.