Local tax preparer filed false returns

She admits costing treasury over $400,000

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.