Houston Business Owner Pleaded Guilty to Tax Fraud
Levi Casildo Castro admitted to employment tax fraud and operating as an unauthorized tax preparer.
Updated on Oct. 13, 2026 in Taxes
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Levi Casildo Castro, 40, has pleaded guilty to federal charges involving employment tax fraud and the unauthorized preparation of tax returns. The schemes collectively cost the U.S. Treasury approximately $400,000.
Why it matters
The case highlights the enforcement of federal tax compliance for small businesses and the dangers of using unlicensed tax preparers. It also underscores the IRS's ongoing efforts to prosecute those who withhold payroll taxes and inflate tax credits.
The fraud schemes resulted in a $400,000 loss to the U.S. Treasury. Castro faces a maximum potential penalty of eight years in federal prison and a $110,000 fine.
The players
Levi Casildo Castro
The 40-year-old Houston business owner pleaded guilty to employment tax fraud and unauthorized tax preparation.
Lee H. Rosenthal
The U.S. District Judge is presiding over the case and scheduled the defendant's sentencing.
Adam Laurence Goldman
The Assistant U.S. Attorney is responsible for prosecuting the case against the defendant.
IRS Criminal Investigation
This division of the Internal Revenue Service is responsible for investigating criminal violations of tax law.
The details
Castro operated A&M Home Remodeling and Cleaning and LC Home Remodeling and Maid Service in Houston, where she withheld payroll taxes from employees but failed to submit them to the government. Additionally, she prepared client tax returns by inflating earned income tax credits while omitting her own name to avoid detection as an unauthorized preparer.
Timeline
Levi Casildo Castro entered a guilty plea on September 29, 2026.
The court scheduled sentencing for December 16, 2026.
Market Dynamics
This case follows a pattern of enforcement set by the Internal Revenue Code regarding registration for tax preparers. It underscores the broader regulatory environment intended to maintain integrity in professional tax services.
The case serves as a warning for taxpayers to verify the registration status of any paid tax preparer to avoid potential legal and financial liabilities. Properly vetting those handling personal financial data can protect individuals from fraudulent tax return filings.
The takeaway
Taxpayers should always ensure their tax preparer provides a valid Preparer Tax Identification Number. Verifying professional credentials is a vital step in protecting against personal tax fraud and ensure that filings are compliant with federal law.
What happens next
The sentencing hearing for Levi Casildo Castro is scheduled to take place on December 16, 2026.
Further reading
Find more information on tax compliance guidelines in the Houston Taxes section.
Source note: This article includes information reported by Financial News.
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