Wisconsin tax preparer filed 340 false returns, sentenced to prison

WHITEWATER, Wis. - A Wisconsin tax professional, who prosecutors said filed 340 false returns in an attempt to defraud the state of more than $330,000, was sentenced to prison earlier this month.

In court:

Mauricio Castaneda, 51, was sentenced to two years in prison and two-and-a-half years of extended supervision. He was also ordered not to prepare or file tax returns for anyone but himself.

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Court records show Castaneda reached a plea deal with prosecutors last July. He was convicted of five counts of fraud, and six other felonies were dismissed.

Tax professional charged

The backstory:

The Wisconsin Department of Revenue said Castaneda operated El Nevado Taxes in Whitewater. Some customers, officials said, filed taxes under Individual Taxpayer Identification Numbers – which are issued to and used by people who are required to have a tax identification number but do not have a Social Security number. Customers received refunds for Wisconsin income taxes withheld.

Later, according to officials, Castaneda allegedly filed fraudulent returns that used different identification numbers, but the customers' same W-2 wage statements that were previously used to receive refunds. Castaneda also allegedly added fictitious spouses and claimed credits to increase the tax refunds.

Castaneda received the refund checks in the mail and deposited them into his bank account, officials said. The Wisconsin Department of Revenue prevented refunds from being issued for 307 of the 340 fraudulent returns, but Castaneda received refunds on 33 returns for a loss of $33,356 to the state.