Immigrant rights activist imprisoned for filing false tax returns for clients

ELIAS BERMUDEZ ADVISED CLIENTS TO FALSELY CLAIM DEPENDENTS WHO LIVED IN MEXICO, WERE NOT THEIR CHILDREN

PHOENIX —  Elias Bermudez, 68, of Phoenix, was sentenced to 18 months in federal prison last week and ordered to pay $131,651 in restitution to the United States for tax fraud.

Bermudez, who claimed to be an “immigrant-rights activist,” was charged October 3 with 27 counts of aiding in the preparation of false tax returns, said a release from the U.S. Attorney’s Office

Founder of Immigrants Without Borders, Bermudez worked as a tax preparer in Arizona for more than 20 years and owned a tax preparation and immigration services business called The Help Center (aka El Centro de Ayuda). His company prepared about 3,000 to 4,000 income tax returns each year between 2007 and 2010. Bermudez pleaded guilty on August 31.

Bermudez admitted to filing fraudulent tax returns by including the Additional Child Tax Credit when he knew the credit didn’t apply.  His fraudulent tax filings caused a loss to the United States of $131,651, said the release.

The government alleged “that for the tax years 2010 through 2012, Bermudez prepared and 22 filed tax returns with the Internal Revenue Service on behalf of individuals that contained false information. Bermudez added a false number of dependents to his clients’ returns in order to maximize refundable credits under the Additional Child Tax Credit.

The investigation was conducted by the criminal investigation division of the IRS. The prosecution was conducted by Assistant U.S. Attorneys Andrew C. Stone and Bridget Minder.

The indictment states that Bermudez’s clients, at his direction, listed dependents on their tax returns who did not meet the IRS’ s qualifications, including listing dependents who lived in Mexico and not with the taxpayer. The returns also listed dependents who had not received half of their financial support from the taxpayer.

For example, Bermudez encouraged his clients to list family members living in Mexico, many of whom were not the taxpayer’s children or dependents, as dependents on the taxpayer’s tax returns, the indictment says.

 

 

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