ST. LOUIS (KMOV) – A St. Louis tax preparer has pled guilty to filing false tax returns on behalf of his clients between January 2007 and the present time in St. Louis County.
Rahman Watson, 39, prepared federal income tax returns at Watson Accounting and Services, LLC and is accused of fabricating clients’ income, typically “household help” and Schedule C income, which would allow his clients to receive receive refundable Earned Income Tax Credits to which they were not entitled. The investigation has uncovered 44 instances resulting in a $213,950 loss to the government.
Watson pled guilty to one felony count each of filing a false tax return and identity theft. Sentencing is scheduled for April 19, 2012.
Filing a false tax return carries a maximum penalty of three years in prison and fines up to $100,000. Identity theft carries a maximum penalty of five years in prison and fines up to $250,000.
Watson has agreed as part of his plea to agree to his debarment as a tax return preparer.