PHOENIX — A state grand jury indicted two Phoenix residents, Karen Hernandez and Pedro Arvizu, for allegedly preparing false personal income tax returns which were submitted to the Arizona Department of Revenue.
The two tax preparers allegedly prepared 16 false returns while working for Tax Xpress during the 2016 and 2017 tax filing seasons, said a release from th Arizona Attorney General’s Office.
Hernandez and Arvizu are each accused of preparing returns with false itemized deductions included on Schedule A. The taxpayers were unaware that false information was included in their returns, said the release.
It is alleged by the Attorney General’s Office that including a schedule with false deductions was done to increase the fees the taxpayers would owe to Tax Xpress.
The unsuspecting taxpayers received higher refunds or had their taxes reduced due to the false entries.
The affected taxpayers will have to file amended returns and be responsible for the additional taxes due along with interest.