A Burlington woman was sentenced on Mar. 17 to 25 months in prison and one year of supervised release for preparing false tax returns, according to United States Attorney Dan Bishop of the Middle District of North Carolina.
The case involves Tracey Hernandez, age 39, who pled guilty on September 5, 2025, to one count of aiding and assisting in the filing of a false tax return. The court also ordered Hernandez to pay $2,106,281 in restitution.
Court documents show that agents from the Internal Revenue Service – Criminal Investigation Division began investigating Hernandez after discovering she prepared and filed fraudulent income tax returns for her clients. Hernandez acted as a “ghost preparer,” meaning she did not sign her name on the returns she completed. IRS data indicates that Hernandez prepared and filed more than 200 false Forms 1040 for calendar years 2021 and 2022. These returns included fraudulent education expenses, refundable education credits, fake Schedule Cs (Profit or Loss from Business), and credits for sick and family leave for certain self-employed individuals.
The Internal Revenue Service – Criminal Investigation Division is handling the investigation. Assistant U.S. Attorney Ashley Waid is prosecuting the case.
The sentencing highlights ongoing efforts by federal authorities to address fraudulent tax preparation practices.
