Lo­cal tax pre­parer filed false re­turns

She ad­mits cost­ing trea­sury over $400,000

Houston Chronicle - - CITY | STATE - By Brooke A. Lewis brooke.lewis@chron.com

A Hous­ton tax pre­parer has ac­knowl­edged pro­duc­ing more than 40 false in­come tax re­turns for clients, cost­ing the na­tion’s trea­sury tens of thou­sands of dol­lars, ac­cord­ing to a news re­lease from to the U.S. At­tor­ney’s Of­fice for the South­ern District of Texas.

Crys­tal T. Kemp ad­mit­ted she pre­pared 41 false in­come tax re­turns for clients at her Hous­ton busi­ness called CQ Tax Prepa­ra­tion. She placed phony items on the tax re­turns in­clud­ing false losses from sole pro­pri­etor­ships, false re­fund­able Amer­i­can Op­por­tu­nity Cred­its and false earned in­come cred­its and child tax cred­its, the news re­lease stated.

The 41 false in­come tax re­turns Kemp filed caused more than $400,000 in tax losses to the trea­sury, ac­cord­ing to the news re­lease.

Kemp also pre­pared a false 2015 in­come tax re­turn for an un­der­cover IRS agent pos­ing as a tax­payer. She claimed a false in­come tax re­fund of more than $5,000 for her fake client, when the tax re­turn should have re­flected the per­son ow­ing an amount of $1,270.

The woman also ad­mit­ted in her plea agree­ment that she claimed a false in­come tax re­fund on her 2013 and 2014 per­sonal in­come tax re­turns, re­sult­ing in a tax loss to the United States of a lit­tle over $96,000, ac­cord­ing to the news re­lease.

U.S. District Judge Sim Lake ac­cepted the plea and has set up sen­tenc­ing for Jan. 19. The woman will face up to three years in fed­eral prison and a pos­si­ble fine of $250,000.

She is out on bail un­til the hear­ing.

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