Date: December 14, 2021 Contact: newsroom@ci.irs.gov LOUISVILLE — On December 7, 2021, a federal grand jury in Louisville returned an indictment charging a Louisville couple, Krlos Hidalgo and Esther Baldeon, with aiding in the preparation of false tax returns. According to the indictment, it is alleged that both Esther Baldeon and Hidalgo assisted in the preparation of false tax returns that contained false dependents. The purpose of the false dependents was to obtain Additional Child Tax Credits for the taxpayers. It is alleged that both Baldeon and Hidalgo knew that the taxpayers were not entitled to the Additional Child Tax Credits. Baldeon is charged with five counts of violating Title 26, United States Code, Section 7206(2). Hidalgo is charged with four counts of violating Title 26, United States Code, Section 7206(2). On December 13, 2021, the defendants were arraigned on the charges before U.S. Magistrate Judge Regina S. Edwards of the U.S. District Court for the Western District of Kentucky. If convicted, Baldeon faces a maximum penalty of 15 years in prison, and Hidalgo faces a maximum penalty of 12 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office made the announcement. The Internal Revenue Service Criminal Investigation is investigating the case. Assistant U.S. Attorney Amanda E. Gregory is prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
