Phoenix Tax Preparer Convicted for Willfully Filing False Tax Returns

A federal jury in Phoenix, Arizona, convicted a man for aiding and assisting in the filing of false tax returns, and for filing false personal income tax returns.   

Between early September and October 14, federal prosecutors across the country participated in the Department’s first-ever National Tax Enforcement Surge. The surge of nationwide resources resulted in prosecutorial actions against 76 defendants whose alleged and proven crimes intended and estimated loss of revenue to the federal government of more than $490,000,000. The Tax Section announced this case among others pursued by the Justice Department’s National Fraud Enforcement Division, U.S. Attorneys’ Offices, and Internal Revenue Service, Criminal Investigation, that targeted tax fraud and related offenses.

Pacific Kashosi, the owner of African Union Tax Services, a tax preparation business, was convicted of 18 counts of aiding and assisting in the preparation of false tax returns for clients of his business and two counts of filing his own false tax returns.  

According to the evidence presented at trial, Kashosi prepared false tax returns for his clients that reported false Covid tax credits, false fuel credits and false business losses.  The false tax returns claimed thousands of dollars in fraudulent refunds. Kashosi was also convicted of filing false 2022 and 2023 federal income tax returns that did not report any of the nearly $900,000 in return preparation fees he received.  Kashosi caused a large portion of the fraudulent refunds claimed on his clients’ returns to be wired into his bank accounts.  

Kashosi faces a statutory maximum sentence of three years in prison for each count of conviction along with a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division made the announcement.   

IRS Criminal Investigation is investigating the case. 

Assistant Deputy Chief Andrew Kameros of the National Fraud Enforcement Division’s Tax Section and Assistant U.S. Attorney Kevin Rapp of the District of Arizona are prosecuting the case. 

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.