On Thursday, Acting U.S. Attorney Abe Martinez announced that a tax return preparer had pled guilty to willfully aiding and assisting in the preparation of a false tax return. As a part of the plea agreement, Crystal T. Kemp admitted to preparing income tax returns for clients from her Houston business named CQ Tax Preparation. Kemp willfully added false items to the tax returns.
This included false losses from sole proprietorships, false earned income credits, false child tax credits, and false refundable American Opportunity Credits. Kemp admitted to preparing 41 false income tax returns for clients causing the United States to sustain a tax loss of $429,131. The defendant also prepared a false 2015 income tax return for an undercover IRS agent.
The return showed a refund of $5,546, when it should have shown that the undercover agent owed $1,270. Finally, Kemp admitted in the plea agreement that she filed false personal tax returns for the 2013 and 2014 tax years. Those false returns caused a tax loss to the United States of an extra $96,608.
At the time of her sentencing on January 19, 2018, Kemp will face a maximum of three years in prison. She had been given permission to remain on bond until her sentencing.