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Thursday, October 29, 2026

Rocky Mount tax preparer Chowan Watson’s $4 million fraud empire crumbles after conviction

Ms Watson pleaded guilty in federal court to one count of aiding and assisting in preparing a false tax return that resulted in a tax loss of about $3.9 million.

• October 29, 2026
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Chowan Watson, 55, of Rocky Mount, pleaded guilty in federal court to one count of aiding and assisting in preparing a false tax return that resulted in a tax loss of about $3.9 million. 

Ms Watson faces a maximum penalty of 36 months in federal prison when sentenced later this year.  She has agreed to pay restitution to the IRS.

Ms Watson and Angela Dickens, who previously pleaded guilty, operated Empire Tax Service, later renamed K&J Tax Service, in Rocky Mount. From 2017 to 2023, Mses Watson and Dickens fraudulently filed hundreds of tax returns by inflating ‘Other 1099 Withholding’ amounts. Their scheme inflated taxpayer refunds and allowed them to take excessive fees from those refunds.  

Total tax losses are approximately $3.9 million. 

“Those who attempt to undermine the integrity of the American tax system should understand IRS Criminal Investigation follows the money to uncover fraudulent schemes,” said special agent in charge Donald Eakins, IRS Criminal Investigation’s Charlotte Field Office. “IRS-CI, partnered with the U.S. Attorney’s Office, will continue to relentlessly pursue anyone who seeks to defraud the tax system and ensure offenders are brought to justice.”

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