St. Louis (KSDK) -- A St. Louis County tax preparer will spend 18 months in prison on tax charges.
Rahman Watson prepared federal income tax returns on behalf of clients and fabricated income so his clients could receive refundable Earned Income Tax Credits that they did not earn, according to the U.S. Attorney of the Eastern District of Missouri.
Watson owned and operated Watson Accounting ansd Services in the county between 2007 and 2011. During the scheme, he identified the "sweet spot" in the EITC table which, if earned, would not only result in no income tax due a taxpayer but would also generate a sizable tax refund even though no tax was due and owing.
Watson and her clients would then split the refunds.
The investigation has uncovered 44 instances of such conduct that cost the government $213,950. The Civil Division of the Department of Justice Tax Division also investigated Watson and, as part of his plea agreement, Watson has agreed to consent to a permanent injunction from preparing tax returns.
Watson, 40, of Florissant, pleaded guilty in January to one felony count each of filing a false tax return and identity theft