Texas tax preparer has received a 36-month prison sentence after pleading guilty to preparing a false tax return. Preparer Kenny Iroegbu must also pay $323,046 in restitution to the Internal Revenue Service. The conviction stemmed from action Iroegbu took as a intern before 2005 and after starting his own business that year.
As an intern, Iroegbu worked at Lynks Tax Service in Greenville, Texas, where he would claim losses if clients had W-2 wages or a net profit if the client did not have W-2wages. He then began doing business as Homequest Vision Tax Service and Homequest Tax Service.
He also made claims for phony credits for federal tax paid on fuels. Iroegbu prepared and e-filed 66 returns for 2006 and 59 returns in 2007, claiming $1.3 million in fuel credits. That resulted in improper refunds used by the IRS to offset taxes owed on returns with the remaining amounts paid to taxpayers.