A Rockford woman has pleaded guilty in federal court to charges related to the preparation and filing of false income tax returns. Gretchen Alvarez, aged 49, ran a tax preparation business known as Sick Credit Repair Tax and Legal Services. She presented herself as a trained income tax preparer but lacked an IRS-issued Preparer Tax Identification Number required for preparing federal income tax returns.
Alvarez admitted that during 2019 and 2020, she misrepresented clients' eligibility for education tax credits and falsely deducted business expenses from their taxable incomes. These actions fraudulently reduced clients' tax liabilities and resulted in larger refunds than they were entitled to receive. The total financial impact of these fraudulent activities amounted to $356,881.
Alvarez could face up to three years in prison along with a maximum fine of $100,000. Sentencing is scheduled by U.S. District Judge Iain D. Johnston for September 17, 2025, at 1:30 p.m.
The announcement of the guilty plea was made by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, alongside Ramsey E. Covington, Acting Special Agent-in-Charge of the Chicago Field Office of IRS Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Jonathan S. Kim.
