The Justice Department has initiated legal proceedings against two individuals accused of preparing fraudulent federal tax returns through businesses located in Los Angeles's San Fernando Valley and Koreatown areas. The lawsuit targets Luis Alberto Mijangos and George Louis Montalvan, seeking to permanently bar them from filing or preparing federal tax returns.
According to the lawsuit, the defendants operated under several business names, including Luismi Services Inc., Luismi Services, Luismi Income Tax Services, and CYL Professional Services. They allegedly used these entities to conduct an unlawful tax scheme by filing false tax returns that included deductions, credits, exemptions, or other items for which their clients were not eligible. Between 2019 and 2022, at least 1,800 federal income tax returns were filed with the IRS by the defendants.
The IRS issued refunds based on these fabricated claims; however, customers did not receive them. Instead, Mijangos and Montalvan are accused of redirecting the funds into accounts they controlled.
One specific instance cited involves a customer who paid $300 for her 2019 federal income tax return preparation. She was provided with a copy indicating a balance due of $364. However, the defendants allegedly submitted a different version to the IRS claiming a refund of $3,965 based on fabricated dependents and education credits. The customer never received this refund as it was reportedly diverted by the defendants.
These allegations remain unproven as no liability has been determined yet.
Taxpayers are advised to exercise caution when selecting a return preparer. The IRS provides resources on its website for choosing qualified preparers and offers a free directory of federal tax preparers along with guidance on credentials taxpayers should look for.
For those with an adjusted gross income below $79,000, IRS Free File offers free online preparation and filing options through partner websites. For others above this threshold, electronic forms can be filled out online without charge.
Over the past decade, numerous injunctions have been obtained by the Justice Department against unethical tax preparers. Details about these cases can be found on both the U.S. Attorney’s Office’s website and the Justice Department’s site.
Assistant United States Attorney John D. Ellis from the Civil Division’s Tax Section is representing this case for the United States government.