Tax Preparer Sentenced for Felony Theft and False Returns

www.revenue.wi.gov

Filed March 25th, 2026

Detected March 26th, 2026

Summary

The Wisconsin Department of Revenue announced the sentencing of Mauricio Castaneda, a Whitewater tax preparer, to 4.5 years in prison for felony theft and filing false tax returns. Castaneda filed 33 false returns, receiving $33,356 in fraudulent refunds, and was prevented from issuing an additional $298,300 in fraudulent refunds. He is prohibited from preparing tax returns for others.

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What changed

Mauricio Castaneda, a tax preparer operating as El Nevado Taxes in Whitewater, Wisconsin, has been sentenced to 4.5 years in prison for felony theft and filing false income tax returns. The Wisconsin Department of Revenue's Office of Criminal Investigation (OCI) identified that Castaneda filed 33 false returns between February 2021 and February 2022, resulting in $33,356 in fraudulent refunds. The OCI also uncovered an additional 307 fraudulent returns filed by Castaneda, which prevented $298,300 in fraudulent refunds from being issued. As part of his sentencing, Castaneda is prohibited from preparing or filing tax returns for anyone other than himself.

This enforcement action highlights the risks associated with tax fraud and the importance of due diligence when selecting a tax preparer. The Wisconsin Department of Revenue has provided tips for consumers to choose reputable preparers, emphasizing checks with the IRS and Better Business Bureau, and cautioning against preparers who base fees on refund amounts or promise unusually large refunds. The case was prosecuted by the Wisconsin Department of Justice's Criminal Litigation Unit following an investigation by the OCI.

What to do next

Review tax preparer selection criteria against DOR guidance
Report suspected tax fraud to the Wisconsin Department of Revenue

Penalties

4.5 years in Wisconsin State Prison System, ordered not to prepare or file tax returns for anyone but himself.

Source document (simplified)

State of Wisconsin • DEPARTMENT OF REVENUE

2135 RIMROCK ROAD • P.O. BOX 8933 • MADISON, WISCONSIN 53708-8933 • 608-266-6466 • FAX (608) 266-5718 http://www.revenue.wi.gov Tony Evers David M. Casey

Governor Secretary Designee of Revenue

March 25, 2026 FOR IMMEDIATE RELEASE CONTACT: Jennifer Bacon, (608) 266-2300 DORCommunications@wisconsin.gov

Whitewater Tax Preparer Sentenced for Felony Theft & Filing False Tax Returns Charges

MADISON, WI –Mauricio Castaneda, a Whitewater tax return preparer, was sentenced to a total of 4 ½ years

in the Wisconsin State Prison System in Walworth County on March 6, 2026, for felony theft charges and filing false income tax returns. Castaneda was also ordered not to prepare or file tax returns for anyone but himself. Charges for five counts of filing false claims for credit were dismissed but read in. According to the criminal complaint, Castaneda operated El Nevado Taxes in Whitewater. From February 2021 to February 2022, Castaneda filed 33 false returns and received refunds of $33,356 to which he was not entitled. The Wisconsin Department of Revenue Office of Criminal Investigation (OCI) identified 307 additional fraudulent returns Castaneda filed, preventing $298,300 in fraudulent refunds from being issued. Castaneda's scheme involved using clients' tax records and wage information to file fraudulent returns to personally receive refunds. The Criminal Litigation Unit in the Wisconsin Department of Justice prosecuted the case following an investigation by the OCI, which investigates individuals and businesses suspected of committing tax crimes. Department of Revenue Offers Tips on Choosing a Tax Preparer

The Wisconsin Department of Revenue offers the following tips for choosing a reputable tax return preparer

to help ensure personal information is secure and returns are accurate:

Check the IRS Directory of Preparers
Check the preparer's history with the Better Business Bureau
Avoid preparers who base their fees on a percentage of the refund or who offer to deposit all or a
portion of the refund into their financial accounts • Be wary of preparers who claim they can get larger refunds than others
Ask if they plan to use e-file
Make sure the preparer is available to answer questions after the return is prepared
Ensure the preparer signs and includes their Preparer Tax Identification Number (PTIN)
Check their credentials. Only attorneys, CPAs and enrolled agents can represent the IRS in tax
matters. Other preparers who participate in the IRS Annual Filing Season Program have limited practice rights to represent taxpayers during audits of returns they prepared. To report tax fraud to the Wisconsin Department of Revenue, visit www.revenue.wi.gov and click the "Report tax fraud" link under Quick Links.