ST. LOUIS – Shasherese M. Reed, a St. Louis, Missouri-based tax preparer, was arrested on Tuesday after being indicted for allegedly preparing 41 fraudulent tax returns for clients. The 52-year-old was charged with 41 counts of aiding and assisting in the preparation of false and fraudulent tax returns.
According to the indictment issued by a grand jury in U.S. District Court in St. Louis, Reed had her Preparer Tax Identification Number (PTIN) and Electronic Filing Identification Number revoked by the IRS in 2015. Despite this, she continued to prepare tax returns for clients from 2017 to 2022 through a business named Majac Money, which was operated out of her home by her daughter.
The indictment revealed that Reed used her daughter’s PTIN and falsely identified her daughter as the paid preparer on the fraudulent tax returns. These returns included fictitious deductions for state and local taxes, business expenses, medical and dental expenses, and mortgage interest.
Special Agent in Charge Thomas F. Murdock of the St. Louis Field Office emphasized the seriousness of the case, stating, “Return preparer fraud remains a top investigative priority for IRS Criminal Investigation (CI). Our agency devotes a large amount of time and resources to presenting such cases to the U.S. Attorney for prosecution.” Murdock also advised taxpayers to be cautious and verify a preparer’s credentials before seeking their services for a fee.
Reed now faces up to three years in prison, a $100,000 fine, or both for each charge brought against her. It is important to note that charges in an indictment are accusations and do not indicate guilt until proven in court.
The investigation was conducted by IRS Criminal Investigation, and Assistant U.S. Attorney Jonathan Clow is handling the prosecution of the case.
