A former IRS employee will spend two years in federal prison after prosecutors say he prepared dozens of false tax returns that resulted in nearly $580,000 in losses
SAN ANTONIO — A former IRS employee has been sentenced to federal prison for preparing false tax returns, according to court records.
Hector Cavazos, 63, of San Antonio, was sentenced to 24 months in federal prison and ordered to pay a $150,000 fine after pleading guilty to preparing a false tax return.
Federal prosecutors say Cavazos owned and operated a tax preparation business where he helped prepare 61 false tax returns for 13 clients and one undercover agent between 2016 and 2021. Court documents state the returns included false Schedule C losses, resulting in a tax loss of nearly $580,000.
Investigators also found Cavazos failed to sign the returns as a paid preparer, violating IRS regulations and concealing his involvement from clients.
Cavazos previously worked for the IRS until 1996 and has a prior federal fraud conviction. He was indicted on multiple counts in September 2024 and pleaded guilty to one count in July.
In addition to prison time and fines, a federal judge permanently barred Cavazos from preparing or assisting with tax returns.
Federal officials say the case serves as a warning to both tax preparers and taxpayers as the upcoming tax season approaches.