Houston Tax Preparer Pleads Guilty in $523,000 IRS Fraud Scheme

HOUSTON, Texas – A Houston tax preparer has pleaded guilty to helping clients file false tax returns that cost the IRS more than $523,000, according to the source report on the case.

Elfrin Lee Patten admitted he knowingly helped clients file fraudulent returns through his Houston business, E. Patten Tax Prep. He agreed to pay $523,139 in restitution, the amount he admitted the scheme cost the IRS.

U.S. District Judge Alfred H. Bennett accepted the plea and set sentencing for February 11, 2027. Patten faces up to three years in federal prison and a maximum fine of $250,000.

He may remain on bond until sentencing.

How the scheme worked

From 2019 to 2024, Patten and his employees falsely claimed business deductions and COVID-19 sick and family leave credits. The claims produced refunds for clients who were not entitled to them. Patten charged those clients thousands of dollars in fees.

Patten also underreported his own income. He claimed only $50,000 in wages, even though his tax preparation business earned him substantially more.