Date: Jan. 18, 2024 Contact: newsroom@ci.irs.gov A Minnesota woman, who previously ran a tax preparation business in Maryland, pleaded guilty today to aiding in the preparation of false tax returns. According to court documents and statements made in court, Kymberly Starr owned and operated The Tax Lady, also known as 5 Starr Business Solutions, a tax preparation business in Maryland. From 2013 to at least 2018, Starr inflated her clients' tax refunds by preparing and submitting to the IRS false tax returns that claimed fraudulent tax deductions and fictitious business profits and losses. Starr's conduct resulted in a loss to the IRS of at least $400,000. Additionally, in 2020 and 2021, Starr obtained over $83,000 in COVID-related Paycheck Protection Program (PPP) loans by submitting fabricated IRS forms containing purported business income from bogus businesses. Starr also filed a false claim, which included fabricated federal tax forms, for unemployment insurance with the Maryland Department of Labor from which she received over $55,000. Starr is scheduled to be sentenced on April 26 and faces a maximum penalty of three years in prison. She also faces a period of supervised release, restitution and monetary penalties. U.S. District Judge Theodore D. Chuang for the District of Maryland will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorneys Shawn Noud and Ezra Spiro of the Justice Department's Tax Division are prosecuting the case.
