A Houston man has landed in federal prison following his conviction for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
Kermit Woods, owner and operator of an income tax preparation business in Houston known as L&L Finance, pleaded guilty to the charge on March 30, 2012. Woods admitted to preparing false income tax returns for others, resulting in a tax loss of $362,340 during years 2004 through 2008.
Today, U.S. District Judge Gray H. Miller sentenced Woods to a 24-month-term of federal imprisonment, which will be followed by one year of supervised release. Woods had previously agreed to pay restitution to the United States in the amount of $362,340, which he has almost paid in full.
As part of his plea agreement, Woods agreed to never again aid or assist in the preparing or presenting of tax returns for any taxpayer except himself. He also agreed not to oppose any civil action brought by the United States seeking to enjoin Woods from preparing income tax returns for others.
Woods further admitted to concealing his income and assets from the IRS by placing items he purchased in another’s name, including a home he built for himself, investment real estate, a Jaguar automobile, and a boat. He also had another person sign an assumed name certificate in Harris County, Texas, as though that person owned the income tax preparation business he operated.
Woods was permitted to remain on bond and voluntarily surrendered to a U.S. Bureau of Prisons facility to be determined in the near future. This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher and by Tax Division Trial Attorney Tracy Gostyla.
The case highlights the importance of tax compliance and the consequences of willfully aiding and assisting in the preparation of false tax returns. Woods’ actions resulted in significant financial losses for the United States, and his sentence serves as a reminder of the importance of honesty and integrity in tax matters.
Mandatory facts:
Defendant/respondent name: Kermit Woods
Criminal charges: Willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return
City and state: Houston, Texas
Exact date: March 30, 2012 (plea agreement), and April [insert date] (sentence)
Sentence: 24 months in federal prison, followed by one year of supervised release
Dollar amounts: $362,340 (tax loss), $346,479 (additional taxes paid)
Related Federal Cases
- Peter Zavell, Filed False Tax Return, Florence FL, 2000 · Florida
- Peter Mwedziwendira, Filing False Personal Tax Returns, Texas 2017 · Texas
- Kevin Dalcourt, Making a False Tax Return, Louisiana 2017 · Louisiana
- Jefferson Kincade, Tax Refund Theft, Texas 2015 · South Carolina
- Theodore Paul Victor, Jr., Income Tax Evasion, Texas 2014 · Texas
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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