LEXINGTON, KY - The owner of a tax preparation service in Richmond, Ky., admitted he prepared a false tax return.
Kennedy was indicted in April of 2011. He provided tax preparation services such as client counseling, preparation of clients’ returns, electronically filing clients’ returns, and maintaining client files. A portion of Kennedy's clients were employed in the aviation industry and were located throughout the country.
On Wednesday, during the third day of his trial, James Raymond Kennedy, 58, pleaded guilty to one count of aiding and assisting in the preparation and filing of false tax returns. As the owner of J.R. Kennedy and Associates (JRKA), Kennedy admitted he prepared a return with an illegal tax deduction, when he knew the deduction was not legitimate.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky and Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office, jointly announced the plea.
Kennedy will be sentenced in February of 2013. He faces a maximum prison term of three years and up to a $250,000 fine. However, the court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.