Burlington Tax Return Preparer Sentenced in Connection with Million Dollar Tax Refund Scheme

Greensboro, N.C. - A Burlington woman was sentenced to 25 months of imprisonment, and one year of supervised release in connection with her preparation of false tax returns, announced United States Attorney Dan Bishop of the Middle District of North Carolina (MDNC).

Tracey Hernandez, 39, pled guilty to one count of aiding and assisting in the filing of a false tax return on September 5, 2025. The court also ordered Hernandez to pay restitution totaling $2,106,281.

According to court documents, agents with the Internal Revenue Service - Criminal Investigation Division ("IRS-CI") began investigating Hernandez for preparing and filing IRS false income tax returns for her clients. Hernandez acted as a "ghost preparer," meaning she did not sign her name on the returns she prepared for clients. IRS data shows that Hernandez prepared and filed over 200 false Forms 1040, United States Individual Income Tax Returns for calendar years 2021 and 2022. The false returns reported, among other things, fraudulent education expenses and refundable education credits, as well as fraudulent Schedule Cs (Profit or Loss from Business) and credits for sick and family leave for certain self-employed individuals.

IRS-CI is investigating the case. Assistant U.S. Attorney Ashley Waid of the Middle District of North Carolina is prosecuting the case.

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