WORCESTER – A local man received a federal prison sentence today for filing false tax returns that resulted in over substantial losses to the IRS.
According to federal prosecutors, U.S. District Court Judge Margaret Guzman sentenced Kwasi Kwarteng, 51, of Worcester, to one year and one day in prison, and one year of supervised release. He was also ordered to pay restitution to the Internal Revenue Service in the amount of $346,186 and a special assessment of $1,300.
Prosecutors say that from at least 2014 to 2018, Kwarteng operated KK Tax Service, which was not registered with the IRS as required by federal law. During this time, he allegedly filed over 1195 tax returns for clients, charging $150 per return.
Kwarteng also allegedly added false information to hundreds of those returns, including deductions for fictitious medical expenses, personal property taxes, gifts to charity, Individual Retirement Account (IRA) contributions and employee business expenses not reimbursed.
Prosecutors say Kwarteng caused over $500,000 in losses to the IRS by using the false deductions to lower the taxable income of clients, resulting in some paying lower taxes than they legitimately owed. In many cases, clients received tax refunds to which they were not entitled.
