New York tax preparer steals $100 million from IRS GUI

Bronx tax preparer "the Magician" arrested in $100 million tax rip-off scheme, facing federal charges including tax fraud and conspiracy.

A Bronx tax preparer, known as "the Magician," was apprehended by IRS Criminal Investigations agents for an alleged $100 million tax scam. Rafael Alvarez, aged 60, was charged with federal tax and conspiracy offenses. Federal prosecutors revealed that Alvarez had orchestrated a scheme over a decade, submitting thousands of false tax returns and embezzling more than $100 million. Alvarez's firm, Atax New York, raked in over $15 million in revenue, according to authorities.

Despite his moniker as "the Magician," Alvarez could not make the charges disappear with a wave of his hand, as stated by IRS-CI Special Agent in Charge Thomas Fattorusso. The arrest was a stark reality check for Alvarez, who now faces the consequences of his actions. A spokesperson for ATAX New York mentioned that Alvarez had retired and distanced himself from the firm when questioned about the tax fraud allegations.

Prosecutors labeled the alleged scheme as one of the largest tax frauds committed by a single tax preparer. FBI New York Director James Smith condemned it as a deliberate attack on the country's tax system. Investigators disclosed that Alvarez orchestrated the scam by enlisting clients to falsely inflate business deductions and fabricate capital losses to boost refunds.

Alvarez, residing in Cortland Manor, New York, is charged with tax fraud, identity theft, making false statements, and conspiracy. He was scheduled to appear in court later in the day to face these charges. U.S. Attorney Damian Williams emphasized that Alvarez's actions amounted to criminal tax fraud, depriving the IRS of over $100 million. The charges on Tax Day serve as a stark warning to tax professionals who attempt to defraud the system.

Information about Alvarez's legal representation was not readily available at the time.