East Bay Tax Prep Biz Owner Traci Austin Charged with Fraudulent Returns

GRIMY TIMES EXCLUSIVE: Federal authorities have hit Traci Austin, 44, owner of East Bay’s Emeryville Tax Services (ETS), with serious charges for orchestrating a fraudulent tax return scheme that bilked the U.S. government out of over $697,000.

A federal criminal complaint unsealed today names Austin for aiding and assisting in the preparation of at least 42 fraudulent tax returns. The complaint paints a picture of systematic deceit where Austin falsely inflated Schedule A expenses and Schedule C income and expenses, and even fabricated dependents to reduce her clients’ taxable income and boost their refunds.

But Austin’s alleged scheme didn’t stop there. The complaint also reveals that since 2016, she hosted a ‘Tax School’ through ETS, charging $200 per student. This tax school was supposedly aimed at training attendees to work as preparers for ETS, but the curriculum allegedly included how to fraudulently boost refunds by creating fictitious businesses and business expenses.

Austin, who faces up to three years in prison and a $100,000 fine if convicted, made her initial federal court appearance today. She remains free on bond and is due back in court February 24 for a status conference.

The investigation was conducted by the Internal Revenue Service’s Criminal Investigation unit, with Assistant U.S. Attorney Abraham Fine leading the prosecution.

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