The fabric of trust that binds a community and its institutions, such as the American tax system, has been compromised by the fraudulent actions of an Augusta “ghost” tax preparer, who has been handed a prison sentence and a hefty restitution bill. According to a release from the U.S. Attorney’s Office, Allen Brown, 41, from Augusta, Georgia, received a 46-month custodial term after pleading guilty to a wire fraud conspiracy, in a case prosecuted by Assistant U.S. Attorney George J.C. Jacobs, III. Judge J. Randal Hall imposed the sentence, which also includes three years of supervised release post-prison, an uncommon feature in the federal system where parole is not an option.
Brown’s deceit, which spanned 2022 and 2023, involved running a tax preparation operation that, while physically located primarily at 1850 Gordon Highway, Suite C, in Augusta, extended to two additional locations—a local church and Brown’s own home—but his business dealings were anything but transparent or sanctified. Skirting IRS mandates, Brown never divulged his identity as a paid preparer on filed returns, furthermore, he stooped to concocting income, creating fictitious deductions, and implementing a fee structure based on the size of the client’s refund rather than a fair and fixed rate, causing the U.S. Department of Treasury to erroneously distribute a striking $1,003,631 in refunds over the course of Brown’s operations, detailed the U.S. Attorney’s Office.
U.S. Attorney Margaret E. Heap emphasized the importance of tax preparers maintaining integrity, and how Brown’s actions severely undermined the fabric of American tax operations, stating, “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.” Heap’s comments also made clear the overarching purpose of criminal tax laws, designed to ensure public service funds are appropriately collected and maintained…