A city tax preparer pleaded guilty Wednesday in federal court to more than a dozen charges of preparing fraudulent returns.
Kwasi Kwarteng, 51, filed more than 1,195 tax returns for clients between 2014 and 2018, according to the office of U.S. Attorney Rachael S. Rollins. On hundreds of them, he added false information in order to lower the amount his clients owed and, in most cases, so that clients could receive tax refunds they were not entitled to collect.
Working under the name KK Tax Service, a business not registered with the IRS, Kwarteng falsified information in order to claim deductions for medical expenses, personal property taxes, gifts to charity, retirement contributions and unreimbursed employee business expenses, Rollins’ office said.
Rollins’ office said Kwarteng’s activities caused more than $500,000 in losses to the IRS.
U.S. District Judge Margaret R. Guzman scheduled sentencing for Aug. 3. For each of the 13 charges of aiding and assisting in the filing of false federal tax returns, Kwarteng faces a maximum sentence of three years in prison, one year of supervised release, a fine of $250,000 and restitution to the IRS.