A Richmond County resident has been sentenced to federal prison for running a fraudulent tax preparation business in Augusta, Georgia. Allen Brown, 41, was given a 46-month prison sentence after pleading guilty to wire fraud conspiracy, according to Margaret E. Heap, U.S. Attorney for the Southern District of Georgia. In addition to his prison term, U.S. District Court Judge J. Randal Hall ordered Brown to pay $1,003,631 in restitution and serve three years of supervised release following his release from prison. Federal law does not allow parole.
Court documents show that between 2022 and 2023, Brown operated a "ghost" tax preparation service at multiple locations in Augusta—including an office on Gordon Highway, a church, and his own residence—where he failed to identify himself as the paid preparer on clients' tax returns as required by IRS regulations. Instead, Brown created false income information and deductions on client returns to increase refunds and charged clients fees based on the refund amounts.
Brown’s scheme involved two options for clients: a “Standard” option resulting in fraudulent refunds ranging from $2,000 to $9,000 and an “I’m Not Scared” option generating fraudulent refunds between $14,000 and $30,000. The more aggressive option included falsely claiming Fuel Tax Credits and misreporting income and expenses; the standard approach relied on other fabricated credits such as Sick and Family Leave Credits.
Prosecutors said Brown did not give clients copies of their prepared returns or review them with clients before filing electronically with the IRS. In total, Brown and others working with him falsified 63 federal income tax returns leading to over one million dollars in fraudulent refunds issued by the U.S. Department of Treasury.
“Tax preparers have a responsibility to accurately prepare tax returns on behalf of their clients. Brown undermined the American tax system and the trust of taxpayers relying on his expertise,” said U.S. Attorney Heap. “The sentence imposed by the Court reflects the serious nature of Brown’s conduct. The criminal tax laws are designed to protect the integrity of the nation’s tax system and to obtain and preserve funds needed for public services. The United States Attorney’s Office for the Southern District of Georgia works closely with our partners at IRS Criminal Investigation to protect the law-abiding American public and the treasury by stopping this fraud.”
“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 Special Agent in Charge Demetrius Hardeman of IRS Criminal Investigation's Atlanta Field Office.“IRS Criminal Investigation special agents are working to protect taxpayers from these unethical tax preparers by investigating and holding them accountable.”
The Internal Revenue Service's Criminal Investigation division led the investigation into this case while Assistant U.S. Attorney George J.C. Jacobs III prosecuted it.
For further inquiries regarding this case or related matters contact can be made through (912) 652-4422.