A tax preparer from St. Louis County admitted to falsifying 42 federal income tax returns for her clients. Elisa Y. Brown, 60, entered a guilty plea in a U.S. District Court to two counts of assisting in the preparation of a false tax return. The fraudulent activities occurred from 2016 to 2020.
Brown prepared the false returns using commercial tax preparation software from her home, charging between $150 and $250 per return. She operated without a Preparer Tax Identification Number (PTIN), which is necessary for returns prepared for compensation. Brown would digitally sign each tax return under the name of the taxpayer, falsely representing to the IRS that the taxpayer had prepared the return.
The fraudulent deductions included false medical and dental expenses, cash donations, and fabricated Schedule C forms, which showed false business expenses amounting to tens of thousands of dollars. Brown's actions over this period led to a tax loss of $171,866 to the IRS. In total, she prepared 560 tax returns during this time, many of which included false deductible expenses.
Her sentencing is set for July 22, with each charge carrying a potential penalty of up to three years in prison, a $250,000 fine, or both.
The case was investigated by IRS - Criminal Investigations, and Assistant U.S. Attorney Jonathan Clow is responsible for prosecuting the case.