Richmond Tax Preparer Sentenced For Preparing False Income Tax Returns

LEXINGTON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation Division, Nashville Field Office, jointly announced today that a Richmond, KY., man, who prepared false income tax returns, was sentenced to 36 months in federal prison.

U.S. District Judge Karen Caldwell sentenced 58 year-old James Raymond Kennedy for aiding and assisting in the preparation of false income tax returns. Kennedy had previously admitted he promoted tax deductions, to his clients, that were not authorized by law. Kennedy submitted false tax returns using these deductions, which resulted in the U.S> Government losing approximately $345,000. Kennedy’s clients were unaware that the deductions Kennedy used were not authorized under the tax code.

Kennedy pleaded guilty to the charges in August of last year. He operated J.R. Kennedy and Associates from 2006 through April 2009.

Judge Caldwell ordered Kennedy to report on September 30, 2013, to the Bureau of Prisons, to begin serving his sentence.

This investigation was conducted by IRS, Criminal Investigation Division. Assistant U.S. Attorney Robert K. McBride represented the U.S. Attorney’s Office in the case.