Augusta “ghost” tax return preparer sentenced to prison

Date: Sept. 25, 2025 Contact: [email protected]

Augusta, GA - On Sept. 25, 2025, a Richmond County man who operated a "ghost" tax preparation business in Augusta, Georgia has been sentenced to federal prison and ordered to pay restitution for defrauding the IRS.

Allen Brown of Augusta, Georgia, was sentenced to 46 months in prison after pleading guilty to wire fraud conspiracy, said Margaret E. Heap, U.S. attorney for the Southern District of Georgia. U.S. District Court Judge J. Randal Hall also ordered Brown to pay $1,003,631 in restitution and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.

As described in court documents and at sentencing, in 2022 and 2023, Brown and several individuals operated a "ghost" tax preparation business at 1850 Gordon Highway, Suite C, Augusta, Georgia, and at two other Augusta locations including a church and Brown's residence. Brown operated as a "ghost" preparer because, contrary to IRS requirements he failed to identify himself as a paid preparer on the federal income tax returns that he prepared and filed for his clients. As a "ghost" preparer, Brown fabricated income to qualify his clients for tax credits, claimed fake deductions to boost the size of the refund, and charged clients a fee based on a percentage of the tax refund. Brown did not provide his clients with a copy of the tax returns he prepared, nor did he review the returns with clients before electronically filing them with the IRS. Brown and other "ghost" preparers who worked with him falsified 63 federal income tax returns for clients, causing the U.S. Department of Treasury to issue $1,003,631 in false tax refunds. The tax fraud scheme Brown executed entailed offering clients two filing options, the "Standard" option or the "I'm Not Scared" option. The "Standard" option generally resulted in a fraudulent tax refund of $2,000 - $9,000. The "I'm Not Scared" option resulted in a fraudulent tax refund of $14,000 - $30,000. For the "I'm Not Scared" option, Brown instructed his "ghost" preparers to falsely claim fuel tax credits and falsely report gross income and other expenses on Schedule C and medical and dental expenses on Schedule A with the tax returns. For the "Standard" option, Brown instructed "ghost" preparers to falsely claim sick and family leave credits and other false items. Brown required his clients to pay him a ten-percent fee of each refund obtained.

"Tax preparers have a responsibility to accurately prepare tax returns on behalf of their clients. Brown undermined the American tax system and the trust of taxpayers relying on his expertise," said U.S. Attorney Heap. "The sentence imposed by the court reflects the serious nature of Brown's conduct. The criminal tax laws are designed to protect the integrity of the nation's tax system and to obtain and preserve funds needed for public services. The United States Attorney's Office for the Southern District of Georgia works closely with our partners at IRS Criminal Investigation to protect the law-abiding American public and the treasury by stopping this fraud."

"Every year around tax season, ghost tax preparers like Allen Brown and other unscrupulous preparers open up shop to take advantage of unsuspecting taxpayers by convincing them into taking credits and benefits for which they don't qualify," said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. "IRS Criminal Investigation special agents are working to protect taxpayers from these unethical tax preparers by investigating and holding them accountable."

This case was investigated by the Internal Revenue Service, Criminal Investigation, and prosecuted for the United States by Assistant U.S. Attorney George J.C. Jacobs, III.

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.