Houston Tax Preparer Admits to $523K IRS Fraud Scheme, Faces Prison

HOUSTON, TX -- A local tax preparer has admitted to aiding or assisting in the preparation of false tax returns, resulting in more than $523,000 in losses to the IRS.

Elfrin Patten admitted he knowingly helped clients file fraudulent tax returns through his Houston business, E. Patten Tax Prep.

From 2019 to 2024, Patten and his employees falsely claimed business deductions and COVID-19 sick and family leave credits to obtain refunds for clients who were not entitled to them. Patten charged clients thousands of dollars in fees. He further underreported his own income, claiming only $50,000 in wages despite earning substantially more from his tax preparation business.

Patten admitted his actions caused approximately $523,139 in losses to the IRS and agreed to pay that amount in restitution.

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

He was permitted to remain on bond pending sentencing.

IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Brad Gray is prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division which is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.