Karistha Johnson, a Tyler, Texas tax preparer, pleaded guilty to filing false tax returns and was sentenced April 15, 2025 to 24 months in federal prison and $1,244,934 in restitution for preparing and filing 610 fraudulent federal tax returns from 2017–2019 by fabricating deductions and business expenses that generated $1.2 million in fraudulent refunds.

Karistha Johnson — 610 False Tax Returns, Tyler, Texas (2025)

Outcome: Karistha Johnson, a tax preparer in Tyler, Texas, pleaded guilty to filing false and fraudulent tax returns and was sentenced April 15, 2025 by U.S. District Judge Jeremy D. Kernodle to 24 months in federal prison and $1,244,934 in restitution, for preparing and filing 610 fraudulent federal returns from 2017 through 2019 that fabricated deductions and business expenses to generate $1,244,934 in fraudulent IRS refunds.

Karistha Johnson operated as a tax return preparer in Tyler, Texas. From 2017 through 2019, she prepared and filed 610 federal tax returns for clients that contained false and fraudulent statements — specifically fabricated deductions and business expenses designed to reduce clients' taxable income and generate the maximum possible refund. Over the three tax years, these 610 fraudulent returns produced $1,244,934 in fraudulent refunds that clients received from the IRS.

The case reflects the common community-level tax preparer fraud pattern: a single operator building a client base through word-of-mouth referrals from customers who received larger-than-expected refunds, without those clients necessarily understanding that the returns were fraudulent. The IRS Criminal Investigation and the DOJ Eastern District of Texas prosecuted the case, with the court emphasizing Johnson's exploitation of her position of trust as a tax professional seeking to assist community members with their federal filing obligations.

Primary Source: IRS Criminal Investigation — Tyler Tax Preparer Sentenced for Tax Refund Fraud Scheme