Maryland Tax Preparer Sentenced to More Than Two Years in Prison for Preparing False Tax Returns

A Maryland man was sentenced today to 27 months in prison for preparing and filing false tax returns on behalf of his clients following his conviction by a federal jury in Greenbelt.

According to court documents and evidence presented at trial, Ronald Eugene Watson, also known as Sabir Muhammad, was a self-employed tax return preparer who operated SW Accounting Associates (SWAA) in Largo, Maryland. The evidence proved that from at least 2015 through 2017, Watson willfully prepared and electronically filed tax returns with the IRS on behalf of his clients, which falsely reported income and deduction information, including fictitious or overstated business and unreimbursed employee expenses. The false deductions reduced clients’ tax liability, often resulting in large, inflated refunds to which they were not entitled. According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from $500 to $1,500.

U.S. District Judge Theodore D. Chuang also ordered Watson to serve one year of supervised release and to pay approximately $268,634 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney Matthew L. Cofer of the Tax Division and Assistant U.S. Attorney Leah B. Grossi for the District of Maryland prosecuted the case.