Phoenix Return Preparer Caught Filing Fake Tax Returns

This Phoenix tax professional just smoked harder than a barbecue brisket in July. The IRS has come down hard, penalising federal charges on Pacifique Kashosi, owner of Africa Union Tax Services LLC, who is facing serious federal charges for allegedly filing inflated tax returns that resulted in undeserved refunds, akin to handing out candy on Halloween. But this isn’t just a one-off; it is part of a growing trend where preparers cross the line from aggressive filing into outright fraud. And if you’re in the tax business? You’d better tighten up. Because the IRS isn’t just issuing warnings anymore, it’s here to make examples.

Slick Moves or Straight-Up Scam?

From 2021 to 2023, Kashosi allegedly filed returns that heavily relied on fuel credits and sick or family leave relief credits, which are typically reserved for self-employed individuals under provisions such as Form 7202. Prosecutors say those claims were inflated or fabricated, allowing clients to reap cash they weren’t entitled to. Meanwhile, Kashosi conveniently "forgot" to report his income for 2022 and 2023. Not exactly a rookie slip. Each count of aiding in the preparation of a false return comes with a potential penalty of up to three years in prison. Multiple counts are on the table. Add to that IRS-Criminal Investigation’s (IRS-CI) involvement, and this isn't just a fine on the wrist; it’s a full-blown enforcement move.

And Kashosi’s not alone. Just ask Aida Villanueva, the Chicago tax preparer who pleaded guilty to filing hundreds of fake returns, or Ryan Ulibarri, the Colorado dentist who used shell entities and “trusts” to dodge over $1.6 million in taxes. The tax world’s bad apples are popping up all over.

The IRS is Clocking Everything

This case is a reminder that the IRS-CI division doesn’t mess around. If you’re still picturing the IRS as a sleepy bureaucracy, think again. It's ramping up surveillance and using AI-driven analytics to find patterns across preparers. Refund outliers? Suspicious clustering of refundable credits? The IRS is matching your filings against national data sets. This isn’t theoretical; it’s happening right now. And while Kashosi’s alleged crimes focused on refundable credits, other recent cases highlight broader schemes. Remember CPA Ofer Gabbay from New Jersey? He helped clients push fraudulent conservation easements and now faces prison time for his role in a $1.3 billion scam. From CPAs to dentists to preparers, no one is flying under the radar anymore.

Lessons for Every Professional in the Picture

Whether you’re a tax preparer, firm leader, or just someone handing over your W-2s, this indictment should be a gut check.

• If you are a tax preparer, you are accountable for every line you sign off on. Inflating credits, even under pressure from a client, can result in criminal charges. 
• If you are a firm owner, you must review your internal controls. One unchecked return or unverified entry could expose the entire practice to risk.
• If you are a client, Bigger refunds do not mean better service. If your preparer is promising unrealistic outcomes, ask more questions.

This is not about creative tax planning. It is clear that this is a case of fraud, and the IRS has demonstrated its readiness to pursue these cases aggressively.  As we saw with Christine Gendron, the Massachusetts CPA who helped orchestrate a $19 million loan fraud, even highly trusted professionals can fall hard and take others down with them.

Future Forecast

The Kashosi case is just a spark in what’s shaping up to be a firestorm. With increased funding and new tech tools, the IRS is going after all kinds of return manipulation, from inflated education credits to shady small business deductions. This shift doesn’t just target high-net-worth tax shelters anymore. It’s about cleaning up systemic abuse at all levels. If your practice handles large volumes of returns with recurring refundable credits, prepare for scrutiny. The IRS is done playing defense. It’s calling the blitz. So, before tax season rolls around again, review your procedures, retrain your team, and recheck every “creative” entry. Because the only thing worse than owing the IRS... is making headlines for it.

Bottom Line? Kashosi’s case is more than just a courtroom drama; it’s a cautionary tale for the whole industry. Stay sharp, stay clean, and when in doubt, step away from the keyboard before you hit “submit.” Want sharper, no-fluff like this? Follow MYCPE ONE Insights for weekly updates covering tax fraud, audit trends, SEC enforcement, and more.