Worcester tax preparer pleads guilty to false tax returns scheme


Date: April 28, 2023

Contact: newsroom@ci.irs.gov

A tax preparer has pleaded guilty in federal court in Worcester to preparing false tax returns in the names of taxpayers.

Kwasi Kwarteng, of Worcester, pleaded guilty on April 26, 2023 to 13 counts of aiding and assisting in the filing of false federal tax returns. U.S. District Judge Margaret R. Guzman scheduled sentencing for Aug. 3, 2023.

From at least 2014 through 2018, Kwarteng operated under the name KK Tax Service –despite not being registered with the IRS as required by law – to file more than 1,195 tax returns in the names of clients, charging approximately $150 per return. Kwarteng added false information to hundreds of the returns to claim deductions for fictitious medical expenses, personal property taxes, gifts to charity, Individual Retirement Account (IRA) contributions, and unreimbursed employee business expenses. The false returns resulted in some clients paying lower taxes than they owed and, in most cases, resulted in clients receiving tax refunds for which they were not entitled. Kwarteng caused more than half a million dollars in losses to the IRS.

The charges of aiding and assisting in the filing of false federal tax returns each provide for a sentence of up to three years in prison, one year of supervised release a, fine of $250,000 and restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.