A Fresno employee of the U.S Internal Revenue Service was arrested at work Friday on 10 counts of alleged tax fraud and making false statements to a government agency, U.S. Attorney Benjamin Wagner said.
If convicted, Yolanda Castro, 45, faces up to $1.1 million in fines and 13 years in prison.
She was indicted by a federal grand jury on Thursday and was scheduled to be arraigned Friday afternoon before U.S. Magistrate Judge Stanley Boone.
According to the indictment, Castro has been employed by the IRS for approximately 20 years, including as a tax examiner and contact representative. Between 2007 and 2013, she allegedly prepared and filed false federal income tax returns, fraudulently claiming tax deductions and credits for herself, her family members and others.
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Of those allegations: On her 2008 tax return, Castro claimed a credit for education expenses that she didn’t incur and provided the IRS phony textbook receipts to support the claim. And in tax returns she prepared for herself and others, Castro claimed child care expenses that had not been incurred.
The case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and the IRS‑Criminal Investigation and is being prosecuted by assistant U.S. attorneys Christopher Baker and Mark McKeon.