E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
The Justice Department has initiated legal action against two individuals accused of preparing fraudulent federal tax returns. The lawsuit, filed in Los Angeles, names Luis Alberto Mijangos and George Louis Montalvan as defendants. It seeks to permanently bar them from preparing or filing federal tax returns.
According to the complaint, Mijangos and Montalvan operated under several business names, including Luismi Services Inc., Luismi Services, Luismi Income Tax Services, and CYL Professional Services. These businesses allegedly had storefronts in Koreatown and Reseda, areas within Los Angeles. From 2019 to 2022, the defendants are said to have filed at least 1,800 false federal income tax returns with the IRS.
The lawsuit claims that these tax returns included deductions, credits, exemptions, or other items for which customers were not eligible. Although the IRS issued refunds based on these fabricated claims, customers reportedly did not receive them. Instead, it is alleged that Mijangos and Montalvan redirected the funds into bank accounts they controlled.
An example cited in the lawsuit involves a customer who paid $300 for her 2019 federal income tax return preparation. She was given a copy indicating a balance due of $364. However, a different version allegedly filed with the IRS claimed a refund of $3,965 based on false dependents and education credits. The customer never received this refund; instead, it was diverted by the defendants.
It is important to note that these allegations have yet to be proven in court.
The IRS advises taxpayers to exercise caution when selecting a return preparer and offers resources on its website for making informed choices. There is also an IRS Free File program providing free online tax preparation for individuals with adjusted gross incomes below $79,000.
Over the past decade, the Justice Department has successfully obtained injunctions against numerous dishonest tax preparers. Information about such 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 of the Civil Division’s Tax Section represents the United States in this case.
