Palestine Tax Pro Accused of $Millions in Refund Theft

TYLER, TEXAS – Jefferson Kincade, 37, of Palestine, Texas, is facing a mountain of federal charges after allegedly running a scheme to steal tax refunds from his clients. The indictment, handed down January 21, 2015, paints a picture of systematic fraud and brazen theft, potentially amounting to millions of dollars.

Kincade, who operated EZ Tax in Palestine, is accused of preparing 31 counts of false income tax returns. The Department of Justice alleges he deliberately inflated refunds by falsifying information related to filing status, dependents, wages, losses, education credits, and itemized deductions – all material matters designed to pad taxpayers’ returns. But instead of delivering those refunds to his clients, Kincade allegedly pocketed the cash.

The scheme didn’t stop at false returns. Kincade is also charged with six counts of theft of government money and six counts of aggravated identity theft. Prosecutors say he intercepted the refund checks, never giving them to the intended recipients. Instead, he enlisted the help of two associates: an acquaintance who was also a client, and the owner of a check-cashing business in Tyler, Texas. Kincade allegedly provided his acquaintance with both the refund checks and his clients’ identification information.

The indictment details a disturbing chain of events: Kincade handed over the checks and IDs to his acquaintance, who then delivered them to the check-cashing business owner. The checks were cashed, the cash handed back to the acquaintance, and ultimately delivered to Kincade. This elaborate scheme allowed Kincade to personally benefit from the stolen refunds, while leaving his clients shortchanged.

Kincade appeared before U.S. Magistrate Judge K. Nicole Mitchell and was released on an unsecured bond. If convicted on all counts, he faces a lengthy prison sentence: up to three years for each of the 31 false return counts, up to 10 years for each of the six theft of government money counts, and up to two years for each of the six aggravated identity theft counts. That’s a potential maximum of 74 years behind bars.

The investigation was conducted by IRS Criminal Investigation, with Assistant U.S. Attorney Tom Gibson leading the prosecution. Kincade was arrested by the Texas Department of Public Safety. It’s crucial to remember that an indictment is not proof of guilt, and Kincade is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Grimy Times will continue to follow this case as it develops.