Hector Cavazos, 63, a former IRS employee in San Antonio, was sentenced to two years in federal prison and fined $150,000 for preparing and filing 61 fraudulent tax returns. Between 2016 and 2021, he used his business to mislead 13 taxpayers, including an undercover agent, in a tax evasion scheme, the U.S. Attorney’s Office for the Western District of Texas reported.
Cavazos, who left the IRS in 1996 following a prior fraud charge, pleaded guilty on July 1, 2025, to one count of preparing fraudulent tax returns. His actions, which involved 27 original charges, led to his current sentence and bar from preparing taxes in the future. U.S. Attorney Justin R. Simmons said Cavazos’ scheme harmed both the Treasury and his clients, who may face penalties and interest.
According to the U.S. Attorney’s Office, Western District of Texas, Troy Caldron, Assistant Special Agent in Charge of IRS Criminal Investigation in Houston, said Cavazos avoided identifying himself as the preparer. “He made his fraud look like his clients prepared the returns,” Caldron said, highlighting the impact on his clients and the tax preparation profession. The case serves as a reminder for taxpayers to carefully vet anyone handling their tax returns…