Related Federal Cases
Kwasi Kwarteng, a tax preparer from Worcester, Massachusetts, pleads guilty to a false tax returns scheme.
BOSTON – Kwasi Kwarteng, a 51-year-old tax preparer from Worcester, Massachusetts, has pleaded guilty to 13 counts of aiding and assisting in the filing of false federal tax returns. U.S. District Judge Margaret R. Guzman scheduled sentencing for Aug. 3, 2023.
Kwarteng operated under the name KK Tax Service – despite not being registered with the IRS as required by law – to file more than 1,195 tax returns in the names of clients, charging approximately $150 per return. He added false information to hundreds of the returns to claim deductions for fictitious medical expenses, personal property taxes, gifts to charity, Individual Retirement Account (IRA) contributions, and unreimbursed employee business expenses.
The false returns resulted in some clients paying lower taxes than they owed and, in most cases, resulted in clients receiving tax refunds for which they were not entitled. Kwarteng caused more than half a million dollars in losses to the IRS.
The charges of aiding and assisting in the filing of false federal tax returns each provide for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000, and restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Kwarteng’s scheme was uncovered after a thorough investigation by the Internal Revenue Service’s Criminal Investigation in Boston. His actions have left many questioning the integrity of the tax preparation industry and the need for stricter regulations.
As the investigation continues, it remains to be seen how many other tax preparers may be involved in similar schemes. One thing is certain, however: Kwasi Kwarteng’s crimes will have far-reaching consequences for the taxpayers of Massachusetts and beyond.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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