A Florida woman is facing a massive federal legal battle after a grand jury handed down a 22-count indictment involving tax fraud and obstruction. Janie Martinez Castillo, who operated Castillo Payroll and Tax Service Inc. (CPTS), stands accused of systemic failures to handle employment taxes and intentionally misleading the Internal Revenue Service.
The charges, announced by U.S. Attorney Gregory W. Kehoe, paint a picture of long-term financial misconduct.
According to federal investigators, Martinez Castillo was legally responsible for collecting and paying over employment taxes for her business. However, between 2019 and 2023, the government alleges she failed to turn over these funds for numerous quarters.
Beyond the business taxes, the indictment claims she filed personal tax returns that contained false information regarding how much of her own income had been withheld.
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The most serious allegations involving “corruptly endeavoring to obstruct” the law stem from claims that she tampered with her company’s financial records. Prosecutors say she altered CPTS’s books after receiving an official IRS summons but before handing the documents over to investigators.
The potential prison time for these charges is significant. If a jury finds her guilty, Martinez Castillo faces up to five years in federal prison for each of the 20 counts of failing to pay employment taxes. The additional counts for filing a false return and obstruction each carry a maximum penalty of three years.
The Internal Revenue Service Criminal Investigation Division handled the probe into CPTS, and Assistant United States Attorney Benjamin S. Winter has been assigned to prosecute the case.
As with all federal criminal matters, the U.S. Attorney’s Office reminds the public that an indictment is only a formal accusation. Martinez Castillo is presumed innocent unless and until she is proven guilty in a court of law.
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