MANSFIELD, Texas — A Mansfield man was indicted on 33 counts of filing fraudulent tax returns, U.S. Attorney for the Northern District of Texas Leigha Simonton announced Wednesday.
John Anthony Castro, 40, was indicted on 33 counts of aiding and assisting in the preparation and presentation of a false and fraudulent return and made his initial appearance in court Tuesday, according to officials.
Castro owned and operated Castro & Company LLC, a virtual tax preparation business with locations in Orlando, Mansfield, and Washington D.C., according to the indictment.
Castro allegedly generated false deductions without taxpayers' knowledge in order to achieve higher refunds and, on many occasions, offered to split the additional refund with taxpayers, according to officials.
An undercover agent posing as a taxpayer seeking tax preparation services contacted Castro & Company for assistance in 2018, and Castro allegedly refused to meet in person without receiving a $5,000 retainer but offered to help virtually, officials said.
According to the indictment, an employee of Castro’s interviewed the agent over the telephone regarding deductions said Castro would make any decisions on what would be included in the tax filing, and didn’t identify any deductions that would apply to the agent.
Castro allegedly filed the agent’s tax return in March of 2018, claiming $29,339 in fraudulent deductions; the IRS issued a $6,007 refund, Castro received $2,999 for his services, and the agent received the remaining $3,008, officials said.
Castro allegedly continued in a similar pattern with other taxpayers, according to officials.
If convicted on all counts, Castro faces up to 99 years in prison – three years per count.
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