A Las Vegas woman was sentenced on Aug. 5 to 30 months in prison for conspiring to defraud the United States by filing false tax returns and diverting portions of fraudulent refunds, according to the U.S. Attorney for the District of Nevada.
Court documents show that Iris Hondermann owned and operated Silver State Tax & Multiservices LLC, a tax preparation business in Las Vegas. An individual close to Hondermann who worked at the business was also charged in connection with the scheme. Between approximately 2017 and 2021, Hondermann and her codefendant prepared client tax returns containing false items such as fabricated business profits and losses, COVID-19 sick and family leave credits, and residential energy credits.
“The deliberate falsification of tax records and the theft of funds are severe violations of public trust and federal law,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada. “Our office, alongside our law enforcement partners, remains committed to aggressively investigating and prosecuting those who use deceit to enrich themselves at the expense of taxpayers and honest institutions.” Acting Special Agent in Charge Scott Brown of IRS Criminal Investigation Phoenix Field Office said, “By inserting false information into client tax returns and taking a share of the fraudulent refunds, Hondermann and her codefendant defrauded the government of millions for personal benefit. This was a substantial theft from the U.S. Treasury and, ultimately, from every honest taxpayer. IRS CI remains dedicated to identifying schemes that exploit the tax system and holding accountable those who choose to profit through fraud.”
From 2017 through 2021, Hondermann’s operation sought more than $5 million in undeserved refunds from the Internal Revenue Service by submitting fraudulent claims on behalf of clients; more than $1.1 million was diverted directly into accounts controlled by either or both defendants during this period.
Hondermann pleaded guilty to one count of conspiracy to defraud the United States; her codefendant has admitted guilt but awaits sentencing. The case announcement came from Assistant Attorney General Colin McDonald with Justice Department’s National Fraud Enforcement Division as well as local federal officials.
IRS Criminal Investigation led this investigation while prosecution was handled by Trial Attorneys Thomas W. Flynn and Stuart A. Wexler from DOJ’s Tax Section.
On April 7, it was announced that a new National Fraud Enforcement Division would focus on prosecuting fraud against Americans as part of President Trump’s Task Force chaired by Vice President J.D. Vance—a whole-of-government effort targeting waste within federal benefit programs.
The U.S. Attorney for the District of Nevada is part of a federal judicial entity serving all seventeen counties in Nevada; it enforces federal laws while collaborating with agencies at all levels on public safety initiatives, according to its official website.