A Las Vegas tax preparer and her son pleaded guilty this spring to a scheme that sought more than $5 million in fraudulent refunds from the IRS. The case is a useful reminder of something most taxpayers never think about: when a preparer cheats, the client is rarely the one who walks away clean.
What happened in the Las Vegas case
According to IRS Criminal Investigation and the U.S. Attorney’s Office for the District of Nevada, Iris Hondermann owned and operated a tax preparation business in Las Vegas, and her son, Ivan Odiaga, worked for the business. From roughly 2017 through 2021, the two prepared client returns that included false items, among them business profits and losses, COVID-19 sick and family leave credits, and residential energy credits. In total they sought more than $5 million in refunds their clients were not entitled to receive.
Two details stand out. First, Hondermann and Odiaga funneled more than $1.1 million of those refunds into their own bank accounts, without their clients’ knowledge or consent. Second, Odiaga filed approximately 279 returns using another preparer’s identifying number without permission, even after the IRS sent multiple letters warning him to stop. Both are scheduled to be sentenced on June 8, 2026, and each faces up to five years in prison for conspiracy to defraud the United States.
This is not an isolated case
The Nevada case is one of many. IRS Criminal Investigation publishes a steady stream of preparer prosecutions across the country: inflated deductions, fabricated credits, stolen refund portions, and “ghost” preparers who file returns without signing them. The pattern is consistent enough that the IRS lists dishonest preparers on its annual scam warnings and reminds taxpayers that they remain legally responsible for everything on a return, even when someone else prepared it.
Why the client pays for the preparer’s fraud
When a preparer inflates a refund, the extra money is not a windfall. It is an exposure. If the IRS later disallows a fabricated credit, the taxpayer owes the tax back, plus interest, plus penalties. If the preparer diverted part of the refund, the taxpayer may never have seen that money and still has to account for it. And if the preparer used a stolen identifier or filed without signing, the taxpayer can be left untangling an identity and filing mess that takes months.
The signs worth watching are practical. Be cautious with anyone who bases a fee on the size of your refund, who asks you to sign a blank or incomplete return, who routes your refund to an account you do not control, or who will not put their own preparer number on the return. A return that promises a refund far larger than anything you have seen before, with no change in your circumstances, deserves a hard second look.
How BCA fits
BCA’s position is straightforward. The person reviewing your filings should have a first duty to you, not to a refund target and not to a volume quota. We bring decades of business and compliance experience to help owners and individuals review their filing posture, understand what a return is actually claiming, and coordinate with a trusted tax preparer or tax advisor whose interests align with the client’s. When something on a past return looks wrong, we help you understand the exposure and the options before the IRS raises the question.
Sources
- IRS Criminal Investigation, “Mother and son plead guilty to $5 million tax conspiracy.” https://www.irs.gov/compliance/criminal-investigation/mother-and-son-plead-guilty-to-5-million-tax-conspiracy
- U.S. Department of Justice, U.S. Attorney’s Office, District of Nevada, “Mother and Son Plead Guilty to $5 Million Tax Conspiracy.” https://www.justice.gov/usao-nv/pr/mother-and-son-plead-guilty-5-million-tax-conspiracy
- IRS Criminal Investigation, “Criminal Investigation press releases.” https://www.irs.gov/compliance/criminal-investigation/criminal-investigation-press-releases
- IRS, “Choosing a tax professional.” https://www.irs.gov/tax-professionals/choosing-a-tax-professional
This information is provided for general educational purposes and reflects opinions based on experience. It is not licensed legal, tax, or financial advice. Criminal case facts are drawn from government announcements and a guilty plea; sentencing and penalties are determined by the court. We refer to and partner with licensed professionals when personalized advice is needed. Laws change, and we make no warranty of accuracy or timeliness.