Orlando – July 19, 2024 – Two Orlando-based tax preparers, Franklin Carter Jr.and Jonathan Carrillo, have pleaded guilty to federal charges for thier involvement in a fraudulent tax scheme.The guilty pleas mark a critical moment in the case that involved falsified returns through Neighborhood Advance *Tax*. Thes pleas may be the key to further developments.
central Florida Tax Preparers Plead Guilty to Fraudulent Tax Scheme
Orlando, Fla. – Two owners of a Central Florida tax readiness company have admitted guilt to federal fraud charges, marking a significant development in a case involving falsified tax returns. Franklin Carter Jr. and Jonathan Carrillo entered their guilty pleas just before jury selection was scheduled to begin in federal court Friday.
The Scheme Unravels
The guilty pleas come after a News 6 examination in 2020
that exposed the practices of Neighborhood Advance Tax, a now-defunct tax preparation service. The company, which operated out of Central Florida strip malls, promised customers the maximum refund.
However, former customers later faced IRS audits and were forced to repay thousands of dollars in undeserved refunds.
Details of the Fraud
Prosecutors alleged that the conspirators obtained excessive refunds for customers by fraudulently claiming tax deductions, such as unreimbursed employee expenses and gifts to charity. Tax preparers were reportedly trained not to disclose fraudulently prepared tax documents to customers.
Court records indicate that Carter and Carrillo pleaded guilty to conspiracy to defraud the Internal Revenue Service, a charge that carries a maximum five-year prison sentence. the plea agreement states that the two men were responsible for a $10.5 million tax loss as part of their work with Neighborhood Advance Tax.
Additional Charges and Guilty Pleas
Carrillo also pleaded guilty to aiding in the preparation of false tax returns for customers, while Carter pleaded guilty to failing to file his own tax returns. Emmanuel Almonor, a third owner, and Neighborhood Advance Tax employees Abryle De la Cruz, Adon Hemley, and Kaylah Dacosta have also pleaded guilty to conspiracy to defraud the IRS. Another employee, Isaiah Hayes, pleaded guilty to preparing falsified tax returns.
These five defendants could have potentially been called as witnesses against Carter and Carrillo had they opted for a trial instead of entering guilty pleas, court records show.
IRS Guidance and Warnings
The IRS offers advice on its website for choosing a qualified tax preparer. The agency also warns against so-called ghost
preparers who do not sign tax returns or fail to include a Preparer Tax Identification number or PTIN.
If a tax preparer attempts to generate a larger refund by creating false exemptions or omitting income, the IRS encourages taxpayers to file a complaint.
sentencing Ahead
Almonor and the five employees previously pleaded guilty to federal charges stemming from the tax preparation business. All are scheduled to be sentenced in the coming months.
