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Press Release

Sacramento Area Tax Preparer Convicted of Presenting False Tax Returns

For Immediate Release
U.S. Attorney's Office, Eastern District of California

SACRAMENTO, Calif. — After a five–day trial, a federal jury found Leticia Tyshalle Marie Reed, 47, of Sacramento, guilty Monday of six counts of making false claims to the Internal Revenue Service, U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Daniel J. Calabretta.

According to evidence presented at trial, Reed was a paid tax preparer who was registered with the IRS. In 2014 and 2015, Reed prepared and submitted federal income tax returns for Sacramento-based clients, relating to tax years 2013 and 2014. These tax returns requested tax refunds to which the clients were not entitled. Reed deliberately manipulated the reported income on each tax return by either inflating it or fabricating it altogether, in order to qualify her clients for the maximum refundable tax credits available. Based on these falsehoods, each return that Reed submitted sought thousands of dollars in tax refunds from the IRS. At times, the refunds requested were almost half of the annual income claimed. Reed would then take a substantial portion of any tax refunds that issued as compensation for preparing her clients’ Form 1040s.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Shelley D. Weger and Kristin F. Scott are prosecuting the case.

Reed is scheduled to be sentenced by Judge Calabretta on Feb. 1, 2024. Reed faces a maximum statutory penalty of five years in prison and a $250,000 fine for each of the six counts. The actual sentence, however, will be determined at the discretion of the Court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Updated October 24, 2023