Owner of Tax Preparation Business in Washington, D.C., Indicted for Conspiring to Defraud the Internal Revenue Service and Preparing False Individual Income Tax Returns
On Feb. 26, 2014, a federal grand jury sitting in the District of Columbia returned a 17 count indictment charging Sherri Davis, previous owner and operator of 2FT Fast Facts Tax Service, a tax return preparation business located in Washington, D.C., for conspiring to defraud the Internal Revenue Service (IRS), aiding and assisting in the preparation of false individual income tax returns and filing false individual income tax returns, the Justice Department and IRS announced following the unsealing of Davis’ indictment today.
According to the indictment, from 2006 through 2011, Davis conspired with others to defraud the IRS by preparing and filing false income tax returns that contained fraudulent deductions, expenses, losses and credits to which 2FT clients were not entitled, thereby generating fraudulent income tax refunds. Davis instructed co-conspirator LaDonna Davis to falsify tax documents for 2FT clients in order to reduce their taxable income and to get a larger refund than what the client was entitled to receive. Davis also provided 2FT clients with false documentation to support fraudulently claimed charitable contributions and mileage expenses on their individual income tax returns for use in a potential or pending audit.
The indictment also alleges that Davis filed false 2007 through 2009 individual income tax returns for herself, which underreported 2FT’s gross receipts and falsely claimed business losses for 2FT. Davis faces a statutory maximum potential sentence of 53 years in prison and a fine of up to $4,250,000.
The case is being prosecuted by Trial Attorneys Jessica Moran and Tiwana Fleming of the Justice Department’s Tax Division. Additional information about the division and its enforcement efforts may be found at its website .