A Kansas man, Hophine Bwosinde, pleaded guilty yesterday to preparing and filing false income tax returns for his clients, resulting in a total loss exceeding $1.5 million to the IRS. Bwosinde, of Lenexa, operated Ambroseli Professional Services, a tax preparation business, and committed these fraudulent activities from 2018 through 2022.

According to court documents and statements made during the proceedings, Bwosinde manipulated his clients’ tax returns by inflating legitimate business expenses or claiming losses for fictitious businesses. Additionally, he falsely reported negative income on clients’ returns, leading to significant underreporting of income to the IRS. These fraudulent actions reduced the taxes owed by his clients and, in many cases, generated refunds to which they were not entitled.

Bwosinde’s actions caused more than $1.5 million in losses to the IRS.

A sentencing hearing is scheduled for February 18, 2025, where Bwosinde faces a maximum penalty of three years in prison. In addition, he may be subject to a period of supervised release, restitution, and monetary penalties. The final sentence will be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines and other statutory factors.

The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kate E. Brubacher for the District of Kansas.

The case is being investigated by the IRS Criminal Investigation. It is being prosecuted by Trial Attorney Erika V. Suhr of the Tax Division and Assistant U.S. Attorney Ryan Huschka for the District of Kansas.

This article, “Kansas Tax Preparer Pleads Guilty to Filing False Returns for Clients” was first published on Small Business Trends