31-years-old Cynthia Lozano, tax preparer from Lemon Grove, was arrested in Phoenix on Tax Day 15th of April, Monday. She is accused of filing false tax returns and using customer Social Security numbers to get $1 million in fraudulent refunds from the IRS.
According to the authorities, Lozano used her tax business to submit fraudulent federal income tax returns seeking false refunds and defraud the Internal Revenue Service. She collected approximately $1 million in tax refunds.
A statement was released from the U.S. Attorney’s office which said, “Frequently, the taxpayers were unaware that Lozano used their Social Security numbers thus also becoming victims of aggravated identity theft. As a result, Lozano improperly received over $1 million from the IRS in fraudulent refunds which she laundered through a bewildering maze of bank accounts. Using the proceeds of this fraud, Lozano, among other things, purchased 20 properties in and near Phoenix, Arizona”.
Lozano started her tax business with the name of “CLozano Income Taxes” in Spring Valley in 2010. She made false statements that prompted the IRS to issue refunds under EIC provisions, which allow for a refundable federal income-tax credit for low- to moderate-income individuals and families as a way to compensate the burden of Social Security taxes and to give an incentive to work. If a taxpayer’s EIC exceeds the amount of taxes actually owed, it results in the IRS paying a refund to the taxpayers, who claim and qualify for the credit.
According to charging documents, the number of victims targeted by Lozano was more than 200. She filed fraudulent IRS 1040 forms in their names.
Lozano purchased 20 properties in the Phoenix metro area with the money she received from the IRS.
The federal prosecutors said that Lozano was charged with 33 counts including aggravated identity theft, wire fraud, tax fraud and mail fraud. She faces up to 47 years in prison and $750,000 in fines if convicted on all charges. She also faces the loss of real estate she purchased with the fraud.
According to the U.S. Attorney’s Office in San Diego, she is summoned to federal court on 16th of April Tuesday.
A 33-count grand jury accusation seeks forfeiture of the real estate to pay back the government and to stop her from getting any financial benefit from her alleged crimes.
Attorney Brian Douglas Sloan has spent his entire career focused on DUI & Vehicular Related offenses, having represented over 1,500 DUI clients in the past 8+ years.