Santa Rosa accountant pleads guilty to tax fraud

A Santa Rosa man who formerly owned a tax preparation office near Coddingtown Mall pleaded guilty Tuesday to filing two false tax returns and failing to report his financial interest in foreign bank accounts, according to federal prosecutors.

Efrain Arturo Jovel, 64, is scheduled for sentencing Jan. 20 in San Francisco.

Federal prosecutors said Jovel admitted that he failed to disclose foreign bank accounts he held in Guatemala and El Salvador on income tax returns filed in 2009 and 2010, and that he did not disclose interest income of $35,104 earned those years on the funds held in the accounts.

Jovel also admitted that he underreported gross receipts from his tax preparation service of $244,120 and $307,846, respectively, resulting in a tax loss of $175,023.

Jovel and his wife, Elizabeth Jovel, were the owners of America’s Income Tax in Coddingtown Plaza when Internal Revenue Service agents raided the business in July 2012. On average, Efrain Jovel prepared approximately 1,800 tax returns per year, according to the U.S. Attorney’s Office.

A woman who described herself as the current owner of America’s Income Tax said Tuesday that Efrain Jovel has not been associated with the business since 2013. However, Elizabeth Jovel is still employed there as a tax preparer.

“There shouldn’t be any qualms whatsoever about doing business with America’s Income Tax,” said Elizabeth Cortina.

The company’s website was taken down Tuesday after a reporter called to inquire about Efrain Jovel’s criminal case. Cortina said the step was taken “to avoid any issues for right now.”

She declined to elaborate. She also declined to state whether she is related to the Jovels.

The maximum penalty for filing a false tax return is three years in prison and a fine of $250,000. The maximum penalty for willfully violating foreign bank account reporting requirements is five years in prison and a fine of $250,000.

You can reach Staff ?Writer Derek Moore at 521-5336 or derek.moore@pressdemocrat.com. ?On Twitter ?@deadlinederek.