Woman Sent to Prison for Preparing False Income Tax Return

HOUSTON – A local tax return preparer has been ordered to federal prison following her conviction of willfully aiding and assisting in the preparation of a false tax return for a client, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation. Crystal T. Kemp pleaded guilty Oct. 12, 2017.

Today, U.S. District Judge Sim Lake handed Kemp a 30-month sentence to be immediately followed by one year of supervised release. In handing down the sentence, the court noted Kemp’s conduct spanned four years and included the preparation of multiple false tax returns for the same clients.

“Today’s sentencing of Kemp puts an end to the activities of someone who made a living off of defrauding the public.  This should send a message to other unscrupulous tax return preparers,” said Goss. “IRS-CI Special Agents and the U.S. Attorney’s office will continue to work vigorously to stop dishonest tax return preparers and their criminal behavior.”

In the plea agreement filed in the record of the case, Kemp admitted she prepared income tax returns for clients of her business in Houston named CQ Tax Preparation. Kemp willfully placed several false items on the tax returns, including false losses from sole proprietorships, false refundable American Opportunity Credits, false earned income credits and false child tax credits.

According to the plea agreement, Kemp admitted she prepared 41 false income tax returns for clients with a combined tax loss to the United States of $429,131. Kemp also prepared a false 2015 income tax return for an undercover IRS agent posing as a taxpayer, claiming a false income tax refund of $5,546 when the tax return should have reflected a tax due and owing of $1,270.       

Kemp further admitted in the plea agreement that she claimed a false income tax refund on her 2013 and 2014 personal income tax returns that resulted in a combined tax loss to the United States of an additional $96,608. 

Previously released on bond, Kemp was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.