ORLANDO, Fla. – The owners of a tax preparation company accused of helping Central Florida customers obtain large income tax refunds by filing falsified returns have pleaded guilty to federal fraud charges.
Franklin Carter, Jr. and Jonathan Carrillo entered guilty pleas just before jury selection was to begin in federal court Friday.
A third owner, Emmanuel Almonor, and five employees previously pleaded guilty to federal charges stemming from the tax preparation business. All are scheduled to be sentenced in the coming months.
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A News 6 investigation in 2020 detailed complaints about Neighborhood Advance Tax, a now-defunct tax preparation service operating out of Central Florida strip malls that promised to get filers the “maximum refund.”
Former customers who paid the company up to $999 to prepare their income tax returns told News 6 they were later audited by the IRS and forced to pay back thousands of dollars in undeserved refunds.
Prosecutors alleged that the conspirators obtained excessive refunds for customers by fraudulently claiming tax deductions such as unreimbursed employee expenses and gifts to charity.
Tax preparers were trained not to disclose fraudulently prepared tax documents to customers, authorities claimed.
Carter and Carrillo pleaded guilty to conspiracy to defraud the Internal Revenue Service which carries a maximum five-year prison sentence, court records show.
The two men were responsible for a $10.5 million tax loss as part of their work with Neighborhood Advance Tax, the plea agreement states.
Carrillo also pleaded guilty to aiding in the preparation of false tax returns for customers, while Carter pleaded guilty to failing to file his own tax returns.
Almonor and Neighborhood Advance Tax employees Abryle De La Cruz, Adon Hemley, and Kaylah Dacosta have also pleaded guilty to conspiracy to defraud the IRS.
Another employee, Isaiah Hayes, pleaded guilty to preparing falsified tax returns.
Those five defendants could have potentially been called as witnesses against Carter and Carrillo had they opted for a trial instead of entering guilty pleas, court records show.
The IRS offers advice on its website for choosing a qualified tax preparer.
The agency also warns against so-called “ghost” preparers who do not sign tax returns or fail to include a Preparer Tax Identification Number or PTIN.
If a tax preparer attempts to generate a larger refund by creating false exemptions or omitting income, the IRS encourages taxpayers to file a complaint.