2 accused of fraud barred from preparing tax returns

A federal court has permanently barred San Antonio tax-return preparers Pete Escalante Gutierrez and Jeanette Gutierrez from preparing federal tax returns for others in the wake of allegations that they submitted more than $3 million in fraudulent returns.

The civil injunction order, to which the Gutierrezes consented without admitting the allegations against them, was signed this week by U.S. District Judge Orlando L. Garcia of the U.S. District Court. It came about as part of a lawsuit the Internal Revenue Service filed in May 2012 against them, and their companies located throughout San Antonio.

The injunction permits their companies, FCRE Inc., Fast Cash Refund Express Electronic Tax Service LLC, Fast Cash Refund Express and Fast Cash Express Electronic Services, to continue to operate, though the Gutierrezes must sell their interests in the businesses and take no role other than administrative matters until they are sold.

While the companies operate, they are permanently barred from promoting any false tax schemes and from advising or encouraging taxpayers to attempt to evade their correct federal tax liabilities.

Each of the businesses and the Gutierrezes must turn over the names of the people for whom they prepared tax returns or claimed tax refunds since Jan. 1, 2012.

The suit alleged the Gutierrezes and their companies prepared federal tax returns for customers that claimed false and exaggerated personal deductions, business deductions, educational and energy tax credits, and other tax credits to which their clients were not entitled, in order to unlawfully understate tax liabilities.

The suit said the amount of tax loss resulting from these improper tax preparation activities exceeded $3 million from 2006 through 2010.

gcontreras@express-news.net