Augusta Woman Sentenced to Federal Prison for Operating ‘Ghost’ Tax Preparation Scheme
Augusta, GA – A Richmond County woman has been sentenced to nearly two years in federal prison for operating a fraudulent “ghost” tax preparation business that defrauded the IRS of more than half a million dollars.
Kim Brown, 40, of Augusta, was sentenced to 22 months in prison after pleading guilty to two counts of Aiding and Assisting in the Preparation and Filing of False Income Tax Returns, U.S. Attorney Margaret E. Heap announced. U.S. District Court Judge J. Randal Hall also ordered Brown to pay $541,912 in restitution and serve one year of supervised release following her prison term. There is no parole in the federal system.
According to court documents, Brown operated a tax preparation business out of her home in 2022, acting as a “ghost preparer” by failing to identify herself as a paid preparer on returns she filed for clients. Brown fabricated income to qualify clients for tax credits, claimed false deductions to increase refunds, and charged fees based on a percentage of the fraudulent refunds. She also failed to provide copies of the prepared returns to her clients or review them before filing.
The fraudulent returns resulted in the U.S. Department of Treasury issuing $541,912 in false refunds.
The case was investigated by the Internal Revenue Service, Criminal Investigation, and prosecuted by Assistant U.S. Attorney George J.C. Jacobs, III.
