Augusta “Ghost Preparer” Pleads Guilty to Preparing and Filing False Tax Returns for Clients

AUGUSTA, GA: A woman who operated a “ghost” tax preparation business in Augusta, Georgia awaits sentencing after pleading guilty to preparing and filing false income tax returns, IRS Forms 1040, for clients.

Kim Brown, 40, of Augusta, Georgia, pled guilty to two counts of Aiding and Assisting in the Preparation and Filing of False Income Tax Returns, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. Brown now faces a possible sentence of up to 3 years’ imprisonment for each of the tax fraud counts to which she has pleaded guilty, a period of supervised release, restitution, and monetary penalties. 

As described in the plea agreement, Brown operated a “ghost” tax preparation business out of her Augusta, Georgia, residence. Brown operated as a “ghost” preparer because, contrary to IRS requirements she failed to identify herself as a paid preparer on the tax returns that she prepared and filed for her clients. As a “ghost” preparer, Brown fabricated income to qualify her clients for tax credits, claimed fake deductions to boost the size of the refund, and charged clients a fee based on a percentage of the tax refund. Brown did not provide her clients with a copy of the tax returns she prepared, nor did she review the returns with clients before electronically filing them with the IRS.  Brown and another individual “ghost” prepared 22 false tax returns that caused the U.S. Department of Treasury to issue $541,912 in false tax refunds.

This case is being investigated by the Internal Revenue Service, Criminal Investigation, and prosecuted by Assistant U.S. Attorney George J.C. Jacobs, III.