Suffolk man sentenced for $1.6 Million tax return fraud

NORFOLK, Va. (WAVY) – A Suffolk man was sentenced Thursday for his role in a tax return fraud scheme.

Kevin Towns, 44, was part of an operation that prepared hundreds of false tax returns that saw a loss of around $1.6 million to the United States. According to court documents, Towns was one of the principal tax preparers at A Plus Tax Service and NN Financial, which operated as tax preparation businesses at different periods between July 2009 and February 2014.

Towns, along with co-defendants Stephanie Towns and Brenda Benn, conspired to operate a business based on creating false tax returns that generated inflated refunds for their clients in order to cultivate good will and generate repeat business.

They used methods such as claiming false education-related expenses, stating excessively high amounts of charitable contributions, and manipulating the amount of income to take advantage of certain tax credits. The customers did not persuade or instruct the tax preparers to generate the false returns.

Towns pleaded guilty to conspiracy and preparing false tax returns back in June. He will serve 40 months in prison.