SACRAMENTO : Myrna Kawakami, 70, of Fairfield, pleaded guilty today to making and subscribing a false tax return, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kawakami ran a tax preparation business in Fairfield called K.I.M. Tax Book Services where she assisted taxpayers in preparing fraudulent federal income tax returns. The returns claimed thousands of dollars in itemized deductions based on ineligible expenses, resulting in fraudulent tax refunds. The total amount lost by the Internal Revenue Service as a result of Kawakami’s fraudulent preparation of 1,035 tax returns between tax years 2012 and 2015 is approximately $1,561,815.
Further, Kawakami also submitted fraudulent tax returns on her own behalf, significantly underreporting the income from her tax business and claiming education credits based on ineligible expenses. By underreporting her income and claiming false education credits on her tax returns for tax years 2013 and 2014, she reduced the amount of tax she owed for 2013 and 2014 by approximately $40,390.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Kawakami is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 23, 2023. Kawakami faces a maximum statutory penalty of three years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.