PHOENIX -- Attorney General Mark Brnovich announced a State Grand Jury indicted Karen Hernandez and Pedro Arvizu, two tax preparers, for allegedly preparing false Arizona State resident personal income tax returns submitted to the Arizona Department of Revenue.
The Arizona Department of Revenue’s Criminal Investigations Unit conducted the investigation and alleges that during the 2016 and 2017 tax filing seasons Hernandez and Arvizu prepared 16 false returns while working as tax preparers for Tax Xpress. Both Hernandez and Arvizu are accused of preparing returns with false itemized deductions included on Schedule A. Taxpayers, who entrusted their tax filings with Hernandez and Arvizu, were unaware that false information was included in their returns.
For the taxpayers, these false entries resulted in higher refunds or reduced the taxes due. It is alleged that including a Schedule with false deductions was done to increase the fees the taxpayers would owe to Tax Xpress. The affected taxpayers will have to file amended returns and be responsible for the additional taxes due along with interest.
Assistant Attorney General Mary Harris is prosecuting this case.
Copies of the indictments.