A woman from Augusta, Georgia, has pleaded guilty to preparing and filing false tax returns for clients. Kim Brown, 40, admitted to two counts of aiding and assisting in the preparation and filing of false income tax returns. Acting U.S. Attorney for the Southern District of Georgia, Tara M. Lyons, stated that Brown now faces a potential sentence of up to three years' imprisonment for each count, along with supervised release, restitution, and monetary penalties.
According to the plea agreement, Brown operated a "ghost" tax preparation business from her home in Augusta. She did not identify herself as a paid preparer on the tax returns she prepared and filed for clients, violating IRS requirements. As a "ghost" preparer, Brown fabricated income figures to qualify clients for tax credits and claimed fake deductions to increase refund amounts. She charged fees based on a percentage of the refunds but did not provide clients with copies of their returns or review them before electronic submission to the IRS.
Brown's actions led to 22 false tax returns being filed with the U.S. Department of Treasury issuing $541,912 in fraudulent refunds. The case is under investigation by the Internal Revenue Service's Criminal Investigation unit and prosecuted by Assistant U.S. Attorney George J.C. Jacobs III.
