Justice Department Seeks to Shut Down Illinois Tax Return Preparer
(STL.News) The United States has filed a complaint in the U.S. District Court for the Northern District of Illinois seeking to bar a Rockford-area tax return preparer from preparing federal income tax returns for others.
The civil complaint was filed against Gretchen Alvarez, aka Gretchen Trejo. The suit is also brought against defendant Sick Credit Repair Tax and Legal Services, which the complaint alleges is the name under which Alvarez sometimes does business. According to the complaint, Alvarez prepares federal income tax returns for Rockford-area taxpayers that significantly understate her customers’ tax liabilities by fabricating business losses. The suit also alleges that Alvarez fraudulently claimed that some of customers attended higher education institutions, when they did not, in order to fraudulently claim education credits on the returns she prepared.
In particular, the suit alleges that Alvarez fabricated money-losing “side businesses” to fraudulently reduce her customers’ legitimate taxable income. According to the complaint, the IRS has interviewed several of Alvarez’s customers, who allegedly stated that they did not operate the listed businesses or incur the business expenses reported on their returns, and did not give Alvarez any reason to believe that such businesses existed.