A Richmond County resident has been sentenced to nearly two years in federal prison for running a fraudulent tax preparation business in Augusta, Georgia. Kim Brown, 40, pleaded guilty to two counts of aiding and assisting in the preparation and filing of false income tax returns. U.S. District Court Judge J. Randal Hall ordered Brown to serve 22 months in prison, pay $541,912 in restitution, and complete one year of supervised release after her incarceration.
Margaret E. Heap, U.S. Attorney for the Southern District of Georgia, said: “In collaboration with our law enforcement partners, we continue to pursue those who defraud the government. Kim Brown stole money from taxpayers, and this sentence holds her accountable.”
Brown operated her tax business out of her home in Augusta during 2022 as a “ghost” preparer—someone who does not sign off on clients’ tax returns as required by the IRS. Special Agent in Charge Demetrius Hardeman of IRS Criminal Investigation’s Atlanta Field Office commented: “Not signing off on a tax return is just one of the signs someone is acting as a ghost preparer. Today’s sentencing of Kim Brown is an example of IRS Criminal Investigation special agents working diligently to protect taxpayers from dishonest tax preparers and a notification to the public of just one scheme utilized by ghost tax preparers.”
According to court documents presented at sentencing, Brown failed to identify herself as a paid preparer on clients’ returns, fabricated income amounts so that clients could qualify for certain credits or receive larger refunds through fake deductions, and charged fees based on refund size. She also did not provide copies or review prepared returns with clients before submitting them electronically.
The investigation found that Brown and another individual were responsible for preparing false returns resulting in over half a million dollars being issued by the U.S. Department of Treasury as improper refunds.
The Internal Revenue Service’s Criminal Investigation unit led the investigation; Assistant U.S. Attorney George J.C. Jacobs III prosecuted the case.
