What happened
The U.S. Attorney's Office for the Southern District of Texas announced on 10 November 2026 that Elfrin Patten admitted to aiding or assisting in the preparation of false tax returns through his Houston business, E. Patten Tax Prep. Prosecutors said that from 2019 to 2024 Patten and his employees falsely claimed business deductions and COVID-19 sick and family leave credits to get refunds for clients who were not entitled to them, charged clients thousands of dollars in fees, and that he under-reported his own income. He admitted causing about $523,139 in losses to the IRS and agreed to pay that amount in restitution. U.S. District Judge Alfred H. Bennett set sentencing for 11 February 2027; he faces up to three years in prison and a possible $250,000 fine and remains on bond. IRS Criminal Investigation investigated.
How the scam works
According to the U.S. Attorney's Office for the Southern District of Texas, from 2019 to 2024 Patten and his employees at E. Patten Tax Prep falsely claimed business deductions and COVID-19 sick and family leave credits to get refunds for clients who were not entitled to them, charged clients thousands of dollars in fees, and he under-reported his own income. He admitted causing about $523,139 in losses to the IRS and agreed to pay that amount in restitution. U.S. District Judge Alfred H. Bennett set sentencing for 11 February 2027; Patten faces up to three years in prison and a possible $250,000 fine and remains on bond. IRS Criminal Investigation investigated.
Clients who do not qualify for a credit or deduction should not accept a return that claims one, even if a preparer presents it as a way to increase a refund. Review your filings and contact the IRS if you believe a preparer claimed credits in your name that you were not entitled to.
Source
U.S. Attorney's Office, Southern District of Texas, 10 November 2026: https://www.justice.gov/usao-sdtx/pr/tax-preparer-pleads-guilty-fraudulent-tax-return-and-covid-credit-scheme
https://x.com/USAO_SDTX/status/2120210824241549509