Reginald Knight, 52, of Arlington, Georgia, was found guilty of making and subscribing a false tax return, the U.S. Attorney’s Office for the Middle District of Georgia announced today. Knight’s fraudulent actions included fabricating financial documents and submitting false claims to the IRS for refunds he was not entitled to.
In March 2018, Knight filed a tax return falsely reporting over $3.2 million in wages, more than $2.5 million in withholdings, and nearly $1.9 million in losses for two businesses that never actually generated income or incurred any losses. Knight also falsely claimed a $2.16 million refund, based on fabricated W-2s and Schedule Cs for these non-operating entities.
The IRS launched an investigation into Knight’s fraudulent filings in 2021, uncovering similar false claims for the years 2014, 2015, and 2016. While the IRS did not issue refunds for the 2014 and 2015 filings, it did approve a $745,953 refund for Knight’s 2016 tax return in June 2017. Knight used this illicitly obtained refund for personal expenses, including the construction of a new home in Albany, funding an investment account, purchasing a vehicle, and covering over $442,000 in expenses.
The IRS has recovered approximately $315,466 from Knight’s fraudulent activities. Acting U.S. Attorney C. Shanelle Booker stated, “Knight attempted to steal millions of dollars from taxpayers, claiming refunds for businesses that didn’t even exist.”
Knight faces up to three years in prison and a $100,000 fine for his role in defrauding the IRS. The case highlights the severe consequences of financial fraud and the ongoing work of the IRS to prevent tax-related crimes.
