Home / Crime and Justice / NC Tax Pros Plead Guilty to Fraud Scheme
NC Tax Pros Plead Guilty to Fraud Scheme
30 Oct
Summary
- Two tax preparers falsely claimed federal income taxes withheld.
- This scheme generated larger refunds and excessive fees.
- Approximately $3.9 million in tax losses were incurred.
Two North Carolina tax preparers, Chowan Watson and Angela Dickens, have pleaded guilty to charges of aiding in the preparation of false tax returns. Operating under the names Empire Tax Service and later K&J Tax Service between 2017 and 2023, the duo submitted hundreds of fraudulent federal returns. They falsely claimed that federal income taxes had already been withheld from their customers' earnings, inflating the 'Other 1099 Withholding' category.
This fraudulent practice led to larger customer refunds and allowed the preparers to collect excessive fees. The government estimates the total tax loss from this operation to be approximately $3.9 million. Both Watson, 55, and Dickens, 54, are awaiting sentencing and have agreed to pay restitution to the Internal Revenue Service.
Watson's guilty plea occurred on October 28, 2026, following Dickens's earlier admission of guilt on August 4, 2026. Each woman faces a maximum statutory sentence of 36 months in federal prison. IRS Criminal Investigation led the investigation into the scheme.
