San Antonio, January 9, 2026
Hector Cavazos, a former IRS employee, has been sentenced to two years in federal prison for preparing false tax returns that caused a significant tax loss of $579,682. Along with a $150,000 fine, he is barred from future tax preparations. This case emphasizes the need for integrity and ethical practices in the tax preparation industry while highlighting similar fraudulent activities in San Antonio.
San Antonio Tax Preparer Sentenced for Fraudulent Returns
San Antonio, Texas – Former IRS employee Hector Cavazos has been sentenced to two years in federal prison after being found guilty of preparing false tax returns. The court’s ruling also entails a $150,000 fine and bars Cavazos from any future involvement in tax return preparations. This case highlights ongoing efforts to maintain integrity within the tax system and underscores the importance of ethical practices in the business community.
Case Overview
Cavazos, age 63, operated a tax preparation business in San Antonio, where he knowingly submitted 61 false tax returns for 13 clients, as well as one undercover agent, from 2016 to 2021. The fraudulent returns included false Schedule C losses, contributing to a significant total tax loss of $579,682. Alarmingly, Cavazos did not sign any of the returns as a paid preparer, an explicit violation of IRS protocols.
Background
Prior to his recent convictions, Cavazos had a history with the IRS. He was employed by the agency until 1996 when he was charged with fraud in California. Following his guilty plea to conspiracy charges at that time, he served two months in prison.
Legal Proceedings
In September 2024, Cavazos faced an indictment on 27 counts relating to his illegal activities. He accepted a plea deal in July 2025, resulting in a single guilty count. U.S. District Judge Fred Biery imposed a 24-month prison sentence along with the financial penalty, thereby reinforcing the seriousness of tax fraud offenses.
Government Perspective
Officials have underscored the detrimental impacts of tax fraud, noting that it harms the U.S. Treasury and places an unfair burden on compliant taxpayers. The imposed sanctions against Cavazos serve as a reminder of the government’s commitment to prosecuting those who engage in fraudulent activities and ensuring that individuals adhere to tax regulations.
Investigation and Enforcement
The investigation was conducted by the IRS Criminal Investigation division, which specializes in investigating financial crimes, including tax fraud. The prosecution was handled by an Assistant U.S. Attorney, reflecting collaborative efforts to uphold law and order in financial reporting.
Similar Incidents in San Antonio
This case is not an isolated incident; San Antonio has witnessed several similar cases involving tax preparation fraud in recent years. Notable cases include the sentencing of tax preparer Sandy Gonzalez, who received two years in federal prison for similar offenses in April 2025, and Eden Garza, sentenced to 12 months and one day in March 2023 for preparing false tax returns.
Conclusion
The sentencing of Hector Cavazos serves as a crucial reminder of the necessary accountability within the tax preparation industry. As the government takes a firm stand against fraudulent practices, it is essential for taxpayers to ensure that their returns are accurate. Communities should remain vigilant and proactive in reporting any suspected fraudulent activities to protect the integrity of the tax system.
Frequently Asked Questions (FAQ)
What was Hector Cavazos convicted of?
Hector Cavazos was convicted of preparing false tax returns, leading to a tax loss of $579,682.
What penalties did Cavazos receive?
Cavazos was sentenced to two years in federal prison, fined $150,000, and barred from preparing, aiding, or assisting in the preparation of tax returns in the future.
Has Cavazos faced legal issues before?
Yes, Cavazos was previously employed by the IRS until 1996, when he was arrested and charged with fraud in the Eastern District of California.
Who investigated Cavazos’s case?
The case was investigated by the IRS Criminal Investigation division.
Are there similar cases in San Antonio?
Yes, there have been similar cases, including the sentencing of Sandy Gonzalez in April 2025 and Eden Garza in March 2023 for preparing false tax returns.
Key Features of the Case
| Feature | Details |
|---|---|
| Defendant | Hector Cavazos, 63, former IRS employee |
| Offense | Preparing 61 false tax returns, resulting in a tax loss of $579,682 |
| Sentence | Two years in federal prison, $150,000 fine, barred from preparing tax returns |
| Investigation | Conducted by IRS Criminal Investigation division |
| Prosecution | Assistant U.S. Attorney Bill Harris |
| Related Cases | Sandy Gonzalez (April 2025), Eden Garza (March 2023) |
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