Evergreen Reporter

A man from Riverside County has been sentenced to six years in federal prison for his involvement in a scheme that resulted in significant tax losses for the Internal Revenue Service (IRS). Salvador Gonzalez, a resident of Corona, was sentenced by United States District Judge Jesus G. Bernal and ordered to pay $403,908 in restitution.

Gonzalez admitted guilt on June 17 to three counts of aiding and assisting in the preparation of false tax returns. He operated Grace’s Lighthouse Resource Center, Inc., a tax return-preparation business based in Corona, since 2013. During this period, Gonzalez instructed clients to create fake corporations and transfer ownership of their assets to these entities. He then directed them to an associate who would prepare the corporation's tax returns using fabricated expenses provided by the clients.

These falsified expenses were used to show business losses that reduced the clients' individual income taxes. Additionally, Gonzalez further lowered his clients' tax liabilities by inventing deductions on personal returns such as unreimbursed employee expenses and charitable contributions.

Gonzalez profited from this fraudulent activity by charging a flat fee or a percentage of gross income for his services. The scheme led to at least $28 million in tax losses for the IRS.

The U.S. Attorney’s Office filed a civil complaint seeking to permanently prevent Gonzalez from preparing or filing any federal tax documents for others. The complaint highlights the negative impact of Gonzalez's actions on various parties including the United States government and his customers.

The IRS urges taxpayers to be cautious when selecting a return preparer and provides resources on its website for identifying reliable professionals and recognizing potential scams.

This case was investigated by IRS Criminal Investigation with prosecution led by Assistant United States Attorney Eli A. Alcaraz and Trial Attorney Lauren K. Pope from the Justice Department’s Tax Division.