Former LV tax preparer sentenced to prison term for falsifying returns

A former Las Vegas tax preparer was sentenced Wednesday to one year in prison for helping prepare false income tax returns and failing to pay payroll taxes.

Elizabeth Campos pleaded guilty in April to 33 counts of aiding and abetting the preparation of false income tax returns and 12 counts of failure to pay payroll taxes.

According to federal court records, Campos and her husband, Pedro Casillas, owned and operated a tax preparation business called Servi-Mex.

"Defendant Campos employed at least one other person at Servi-Mex, who also prepared tax returns," according to the woman's plea agreement. "Defendant Campos trained this person to prepare tax returns and directed them to falsify tax returns by intentionally falsifying unreimbursed employee expense deductions, including deductions for fabricated mileage."

Starting about 2007, according to the plea agreement, Campos "regularly inflated or invented mileage deductions and other unreimbursed employee business expenses in order to reduce her clients' federal tax obligations and, in some cases, increase their refunds for tax year 2006." She also told her workers to do the same.

In October 2008, Campos directed a worker to prepare a false federal tax return for an undercover IRS agent. In December 2008, Campos also prepared a false federal tax return for an undercover IRS agent.

According to her plea agreement, Campos failed to withhold and pay employment taxes for her employees for the years 2003 to 2007.

Campos appeared for sentencing Wednesday before U.S. District Judge Roger Hunt, who ordered her to pay nearly $124,000 in restitution. The defendant has until Nov. 12 to surrender.

Defense attorney Frank Cremen told Hunt his client has cooperated with authorities since the start of the investigation. He suggested a sentence of house arrest.

Campos tearfully apologized for her conduct and said she would accept whatever punishment the judge imposed.

"Your honor, I know what I did was wrong," she said.

Probation officials and prosecutors had recommended an 18-month prison term, but Hunt chose a lesser sentence.