Tax preparer admits to fraud resulting in over $500,000 in losses
HOUSTON - A local tax business owner has pleaded guilty to aiding and assisting in the preparation and filing of false income tax returns, according to U.S. Attorney Alamdar S. Hamdani.
Krystal Wright was the sole owner and only tax preparer at WW2F in Freeport for six years.
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Officials said most of Wright's clients did not have a business nor did they discuss any business income or expenses with her.
After Wright completed a tax return, she did not review the completed documents with clients and only provided them with the refund amount and first two pages of the return.
As a result, officials said this prevented her clients from identifying overstated or false items on their tax returns.
Officials stated that from 2017 through 2020, Wright prepared and filed approximately 83 federal income tax returns that contained false and fraudulent items. Some included qualified solar electric property costs, gifts by cash or check, business expenses, wages, salaries, tips and supplies.
The false and fraudulent filings resulted in a total sustained tax harm of $525,404.
Wright is expected to be sentenced on June 26.
Wright faces up to three years in federal prison and a possible $250,000 maximum fine.