Tax Preparation Classes: Inside the IRS Push Against Ghost Preparers

The IRS continues to reinforce its commitment to protecting taxpayers by aggressively pursuing and prosecuting unethical or fraudulent tax preparers. Recent enforcement actions demonstrate the agency’s determination to hold fraudulent tax preparers accountable—an essential step in maintaining public trust and the integrity of the tax system. IRS Criminal Investigation (IRS-CI), the law-enforcement arm of the IRS responsible for investigating financial crimes, recently uncovered multiple schemes that generated more than $1 million in fraudulent tax refunds.

In August 2025, Kim Brown of Augusta, Georgia, was sentenced to 22 months in federal prison and ordered to pay $541,912 in restitution for defrauding the IRS. Brown operated as a “ghost” preparer, meaning she prepared tax returns for clients but failed to sign them as a paid preparer, hiding her involvement. Investigators found that she fabricated income so clients would qualify for tax credits, inflated deductions to increase refund amounts, and charged fees based on a percentage of the refund. “Not signing off on a tax return is just one of the signs someone is acting as a ghost preparer,” said Special Agent in Charge Demetrius Hardeman of the IRS-CI Atlanta Field Office. “Today’s sentencing of Kim Brown shows our agents’ commitment to protecting taxpayers from dishonest preparers.”

Only weeks later, on September 25, 2025, another Augusta-based preparer—Allen Brown—was sentenced to 46 months in federal prison and ordered to pay more than $1 million in restitution. Court documents reveal that in 2022 and 2023, Brown and several associates prepared and filed at least 63 fraudulent federal tax returns without identifying themselves as paid preparers. Like many ghost preparers, Brown fabricated income, falsified deductions, and charged clients fees based on the size of their refunds. “Every year around tax season, ghost tax preparers like Allen Brown and other unscrupulous preparers open up shop to take advantage of unsuspecting taxpayers by convincing them into taking credits and benefits for which they don’t qualify,” Hardeman said. “IRS Criminal Investigation special agents are working to protect taxpayers from these unethical tax preparers by investigating and holding them accountable.”

These cases highlight the importance of being vigilant when choosing a tax professional. Warning signs include a preparer who refuses to sign your return, bases their fee on your refund amount, promises unusually large refunds, or asks for your refund to be deposited into their account. The IRS encourages taxpayers to work with reputable, transparent tax professionals and to report suspicious preparers to help prevent fraud and protect the broader tax system.