The IRS remains committed to protecting taxpayers by rigorously pursing and prosecuting unethical or fraudulent tax preparers. Recent enforcement actions highlight how the IRS is holding fraudulent tax preparers accountable and are a critical part of maintaining integrity and public trust in the tax system. IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS responsible for conducting financial crime investigations, including tax fraud. IRS-CI investigated the following schemes generating over $1 million in fraudulent tax refunds.
In August 2025, Kim Brown, who operated a “ghost” tax preparation business in Augusta, GA, was sentenced to 22 months in federal prison and ordered to pay $541,912 in restitution for defrauding the IRS. Brown operated as a “ghost” preparer because 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.
“Not signing off on a tax return is just one of the signs someone is acting as
a ghost preparer,” said Special Agent in Charge Demetrius Hardeman, IRS CI,
Atlanta Field Office. “Today’s sentencing of Kim Brown is an example of IRS
Criminal Investigation special agents working diligently to protect taxpayers
from dishonest tax preparers and a notification to the public of just one
scheme utilized by ghost tax preparers.”
On September 25, 2025, Allen Brown, who also operated a “ghost” tax preparation business in Augusta, was sentenced to 46 months in federal prison and ordered to pay $1,003,631 in restitution for defrauding the IRS. Court documents state that in 2022 and 2023, Brown and several individuals operated a “ghost” tax preparation business by failing identify himself as a paid preparer on the federal income tax returns that he prepared and filed for his clients. As a “ghost” preparer, Brown fabricated income to qualify his 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 and other “ghost” preparers who worked with him falsified 63 federal income tax returns for clients.
“Every year around tax season, ghost tax preparers like Allen Brown and other
unscrupulous preparers open up shop to take advantage of unsuspecting taxpayers
by convincing them into taking credits and benefits for which they don’t
qualify,” said Hardeman. “IRS Criminal Investigation special agents are working
to protect taxpayers from these unethical tax preparers by investigating and
holding them accountable.”
Contact the Tax Lawyers at
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)
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