The U.S. Department of Justice filed a complaint against a Rockford tax return preparer, seeking to bar her from preparing federal income taxes for clients in 2021.
According to the DOJ, Gretchen Alvarez (aka Gretchen Trejo) and her company, Sick Credit Repair Tax and Legal Services, at 611 Fisher Ave, filed income tax returns that understated her customers’ tax liabilities by fabricating business losses.
The suit also said Alvarez fraudulently claimed some of her customers attended higher education institutions, which they did not, to claim education credits on their returns.
The lawsuit claimed Alvarez fabricated money-losing “side businesses” to reduce her customers’ taxable income.
The Justice Department said Alvarez has defrauded the government of “substantial” tax revenue.
Alvarez will serve up to 3 years in prison and pay up to $100,000 in fines. Alvarez’s sentence will be determined on September 17th.
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