An Internal Revenue Service 1040 Individual income tax form for 2021 arranged in Louisville, Kentucky, U.S., on Tuesday, April 12, 2022. Refund sizes in some cases have been up by nearly 25% compared with last year due to pandemic relief programs and rising wages. Photographer: Luke Sharrett/Bloomberg via Getty Images
A Dallas tax attorney is charged with helping wealthy business owners hide more than $1 billion from the IRS in an alleged scheme using fake invoices and shell companies.
Joseph Garza, 79, faces a total of 41 counts of wire fraud, conspiracy, and aiding in the preparation of fraudulent income tax returns, according to a federal indictment.
Garza pleaded not guilty to the charges and was released, according to court records.
The indictment does not name any of his clients or their businesses.
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According to prosecutors, Garza was a partner in the law firm Garza & Harris Ltd. in Dallas. A woman who answered the phone at the firm’s office hung up when asked for comment Thursday.
Garza created a shell “services” company and a shell “investments” company to fraudulently move money to avoid taxes, prosecutors said.
“Garza and others further concealed the circular flow of funds by manufacturing fake invoices for false business expenses, commissioning fake business valuation reports, and creating sham contractual agreements,” the indictment said.
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The scheme cost the IRS more than $200 million in unpaid taxes, prosecutors said.
