Dallas Tax Preparer Pleads Guilty

DALLAS — Curtis Demond Johnson, who operated an income tax preparation business in Dallas, appeared in federal court this morning before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.

According to the factual resume filed in the case, from approximately 2010 to 2014, Johnson operated Inworks Tax Services, located in Galleria Tower Three on Noel Road in Dallas. 

From at least 2011 through 2013, according to the factual resume, Johnson willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), tax returns that were materially false.  Johnson routinely falsified or inflated or one more business deductions on Schedule C to create a business loss that offset legitimate wage income.  This produced an inflated refund to the client and a corresponding tax loss to the U.S.  His scheme also promoted additional clients and earned fees for Johnson.  In fact, during this time, according to the factual resume, income tax returns prepared and filed by Johnson that contained false and fraudulent Schedule Cs resulted in an estimated tax loss to the U.S. of $480,859.

Sentencing is set for December 22, 2016, before U.S. District Judge Jane J. Boyle.  Johnson faces a statutory maximum penalty of three years in federal prison and a $250,000 fine.  He may also be ordered to pay restitution. 

IRS Criminal Investigation is investigating the case.  Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

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