California man accused of falsely claiming to be an IRS Enrolled Agent

A Fairfield, California man accused of falsely presenting himself as an IRS Enrolled Agent is facing 16 felony charges following a lengthy investigation by the Treasury Inspector General for Tax Administration.

Acting U.S. Attorney Lawrence G. Brown announced Friday that a federal grand jury returned a 17-count indictment against Keith Thayer Towns, 46. Towns, whose business Web site allegedly advertised that he was an enrolled IRS agent, faces 16 felony charges of making false statements to the IRS and a misdemeanor charge of misusing the name of the IRS.

The indictment contends that Towns, from March 2004 to March 2009, submitted power of attorney forms to the IRS in which he claimed to be an enrolled agent certified by the federal tax agency. The indictment also says that his Emerge Financial Group Web site made that false claim for more than five years.

"Paid preparers are a critical component and stakeholder in tax administration," J. Russell George, the Treasury Inspector General for Tax Administration, said in a prepared statement. "When preparers overstate their professional qualifications, it impacts taxpayers' faith in the tax system."

The maximum penalty for each false statement is five years in prison, a $250,000 fine and a three-year term of supervised release. For misuse of the IRS name, the maximum penalty is one year in prison, a $100,000 fine, and a one-year term of supervised release.

Before: Here is Towns's presentation as it appeared on the Emerge Financial Group Web site before the indictment:

After: Here is Towns's presentation as it appears now on the Emerge Financial Group Web site:

 

Voice of the Editor

What would you do if one of your clients won the lottery? We asked several accountants to weigh in with their advice for the lucky Powerball winner, and the tips we received are useful for anyone who receives a windfall, whether it's a lottery win, an inheritance, a big bonus on the job, or a killing in the stock market.
ADVERTISEMENT

This Week on AccountingWEB

CPAs Mira Finé, Scott Hitchcock, Rob Keasal, Kathy Scorcio, and Ken Travis offer ten pieces of financial advice for the newest Powerball winner.
Hang Bower of BDO USA and Dan Black of Ernst & Young share their perspectives on why their firms made the Best Places to Work for Recent Grads 2013 list.
Herbein + Company, Inc. firm members talked with AccountingWEB about their year-round employee wellness program.
Bill Walter of Gross, Mendelsohn & Associates and Harold Gaar of TravisWolff LLP weigh in on mobile technology use while employees are at work.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT