Florida Tax Preparer Sentenced for $20 Million Tax Fraud Scheme

In one of the most egregious tax fraud cases of the year, a South Florida tax preparer has been sentenced to nearly five years in federal prison after admitting to preparing thousands of fraudulent tax returns.

Beatriz Toledo, the owner of Immigration and Tax Service Group LLC, was sentenced in 2025 for aiding and assisting in the preparation of false tax returns between 2017 and 2021—despite a prior court injunction banning her from tax preparation altogether, reported by the IRS.

The Scheme: 7,800 False Tax Returns and Millions in Refunds

Toledo willfully prepared and filed approximately 7,800 fraudulent federal tax returns that included:

• False claims for Residential Energy Credits
• Inflated or fictitious itemized deductions (e.g., state and local sales taxes)
• Bogus business expense claims to reduce taxable income

These false returns resulted in an estimated $20 million in underpaid taxes and allowed her clients to receive inflated refunds.

$7.1 Million in Fees Taken from Client Refunds

Toledo’s business profited handsomely from the fraud. Her company collected approximately $7.1 million in tax preparation fees, taken directly from her clients’ refund checks—often without their full understanding of the scheme or the risks involved.

Ignoring a Court Order: A History of Fraud

Toledo was not new to tax trouble. In 2010, the U.S. government secured a permanent injunction (Case No. 09-cv-21987-COOKE) prohibiting her from preparing false returns. That injunction was finalized in 2020—but she continued her illegal activities anyway.

Despite the court order, she operated her business as usual, preparing false returns and violating the very law she agreed to uphold. She was indicted in 2024 and has now been sentenced to:

• Nearly 5 years in federal prison
• 1 year of supervised release
• Over $20 million in restitution to the IRS

What This Means for Taxpayers

Even if you weren’t aware of a preparer’s wrongdoing, you could still be liable for any false or fraudulent information filed under your name. If you used Immigration and Tax Service Group or suspect your return may contain errors:

• Get copies of your returns from 2017–2021
• Review your tax credits, deductions, and business expenses
• Amend any false returns with a qualified tax professional
• Respond promptly to any IRS correspondence

How to Avoid Tax Preparer Fraud

To protect yourself and your refund:

• Use a preparer with a valid Preparer Tax Identification Number (PTIN)
• Verify credentials (EA, CPA, or Tax Attorney)
• Never let a preparer deposit your refund into their own account
• Always review your return before signing
• Be wary of promises for “huge refunds” without documentation

IRS Trouble Solvers Is Here to Help

If you were affected by Beatriz Toledo’s fraudulent practices—or believe another tax preparer gave you bad advice—don’t wait until the IRS comes knocking.

At IRS Trouble Solvers, we help clients:

• Correct fraudulent or inaccurate tax returns
• Respond to IRS notices or audits
• Reduce penalties and interest
• Recover from the damage caused by tax preparer fraud

Contact us today for a free consultation.