Tax Preparation Business Owner Convicted Of Tax Fraud

HOUSTON – Charles Lee Harrison, the owner of a tax preparation business, has entered a guilty plea to willfully aiding and assisting in the preparation and presentation of a false tax return, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI).

According to the plea agreement filed in the record of the case, Harrison was the owner of Harrison and Harrison, a tax preparation business with offices in Houston and Navasota.

Today, he admitted he placed false items on a client’s income tax return that caused a loss of more than $9,000. However, as part of his plea, Harrison stipulated that the relevant conduct for purposes of sentencing is approximately $396,057, which includes tax loss on other returns he prepared for others as well as his own.     

U.S. District Judge Lynn N. Hughes, who accepted the plea today, has set sentencing for Sept. 15, 2014. At that time, Harrison faces up to three years imprisonment and a possible $250,000 fine.

This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.