LAS VEGAS, NV – August 9, 2026 (STL.News) Iris Hondermann – A federal judge has sentenced Las Vegas tax preparer Iris Hondermann to 30 months in federal prison for orchestrating a years-long tax fraud scheme that sought more than $5 million in fraudulent IRS refunds and diverted more than $1.1 million into bank accounts controlled by the conspirators. The case highlights the significant financial damage caused by fraudulent tax return schemes and serves as another reminder that taxpayers remain legally responsible for the accuracy of the returns filed in their names.
Hondermann pleaded guilty to one count of conspiring to defraud the United States after admitting that she and a codefendant prepared fraudulent federal income tax returns for clients between approximately 2017 and 2021. According to the U.S. Department of Justice, the false returns included fabricated business income and losses, fraudulent COVID-19 sick and family leave credits, and false residential energy credits designed to generate refunds to which taxpayers were not entitled.
Federal investigators said the scheme targeted the Internal Revenue Service by artificially inflating refunds while secretly diverting portions of those refunds to accounts controlled by Hondermann and her codefendant.
Iris Hondermann – A Scheme That Lasted Four Years
According to court documents, Hondermann owned and operated Silver State Tax & Multiservices LLC in Las Vegas. Prosecutors said the business became the center of an extensive refund fraud operation that exploited both legitimate taxpayers and the federal tax system.
Authorities said that from 2017 through 2021, Hondermann and her codefendant prepared numerous false tax returns containing fabricated financial information. Rather than simply making mathematical errors, investigators alleged the returns intentionally included false tax benefits designed to maximize refunds.
Among the fraudulent claims were:
- False business profits and losses.
- Fraudulent COVID-19 sick and family leave credits.
- False residential energy tax credits.
The Justice Department said those fraudulent returns sought more than $5 million in refunds that taxpayers were not legally entitled to receive.
Iris Hondermann – More Than $1.1 Million Diverted
The fraud extended beyond filing false tax returns.
According to prosecutors, Hondermann and her codefendant also diverted portions of clients’ refunds into bank accounts they controlled.
Investigators determined that more than $1.1 million in fraudulent tax refunds was routed into those accounts during the conspiracy. In some instances, clients were unaware that portions of their refunds had been redirected.
Federal officials said the theft represented not only fraud against the U.S. Treasury but also a betrayal of clients who trusted their tax preparer to act in their best interests.
Iris Hondermann – IRS: Fraud Hurts Every Honest Taxpayer
IRS Criminal Investigation emphasized that tax refund fraud ultimately affects all taxpayers.
Acting Special Agent in Charge Scott Brown of the IRS Criminal Investigation Phoenix Field Office said the conspirators enriched themselves by inserting false information into client returns and taking shares of fraudulent refunds.
Brown said the scheme amounted to millions of dollars stolen from the U.S. Treasury, adding that IRS Criminal Investigation remains committed to identifying tax fraud schemes and holding those responsible accountable.
Federal prosecutors echoed that message.
First Assistant U.S. Attorney Sigal Chattah said deliberately falsifying tax records and stealing federal funds are serious violations of both federal law and the public trust. She said authorities will continue aggressively investigating individuals who enrich themselves through fraudulent tax schemes.
Codefendant Still Awaits Sentencing
Hondermann’s codefendant also admitted participating in the conspiracy by preparing false tax returns for clients.
Unlike Hondermann, however, the codefendant has not yet been sentenced. Court records show the individual previously pleaded guilty and remains awaiting sentencing in federal court.
The investigation was conducted by IRS Criminal Investigation, while trial attorneys from the Justice Department’s Tax Section prosecuted the case.
Another Reminder About Choosing Tax Preparers Carefully
This Nevada case follows a pattern federal authorities have increasingly highlighted in recent years.
Just days before Hondermann’s sentencing was announced, the Justice Department disclosed that a Memphis, Tennessee, tax preparer pleaded guilty after authorities alleged she prepared false returns that attempted to defraud the IRS of more than $5.4 million through fabricated tax credits and deductions. While the two cases are unrelated, they illustrate a recurring enforcement priority for federal investigators targeting dishonest tax preparation businesses.
IRS Criminal Investigation continues to identify fraudulent preparers who exploit increasingly complex tax laws, refundable credits, and pandemic-era tax provisions.
Taxpayers Remain Responsible
One of the most important lessons from cases like this is that hiring a professional tax preparer does not eliminate a taxpayer’s legal responsibility.
Under federal tax law, taxpayers sign their returns under penalty of perjury, certifying that the information is accurate to the best of their knowledge.
The IRS has repeatedly warned taxpayers to review every return before signing it, regardless of who prepared it.
Warning signs of dishonest tax preparers can include:
- Promises of unusually large refunds.
- Preparation fees based on refund size.
- Refusal to explain how deductions or credits were calculated.
- Directing refunds into accounts they control.
- Asking clients to sign incomplete returns.
- Claiming tax credits without supporting documentation.
Legitimate tax professionals should provide copies of completed returns, answer questions about deductions, sign the return as the paid preparer, and include their valid IRS Preparer Tax Identification Number (PTIN).
Fraud Prevention Benefits Everyone
Tax fraud is not considered a victimless crime.
Fraudulent refund claims reduce federal revenue, increase enforcement costs, and undermine confidence in the tax system. Honest taxpayers ultimately bear those costs through increased compliance efforts and additional IRS scrutiny designed to detect fraudulent filings.
Federal investigators have significantly expanded the use of data analytics, financial tracing, and electronic filing reviews to identify suspicious refund patterns, making organized refund fraud increasingly difficult to conceal.
While most professional tax preparers operate ethically, the Justice Department encourages taxpayers to work only with qualified professionals, carefully review every return before filing, and immediately question any deduction or credit they do not understand.
The sentencing of Iris Hondermann closes one chapter of a multi-year federal investigation, but authorities say efforts to identify fraudulent tax preparers and protect taxpayers from refund fraud remain an ongoing priority for both the Justice Department and IRS Criminal Investigation.
