St. Louis Tax Preparer Admits Preparing False Tax Returns

ST. LOUIS – A St. Louis tax preparer on Monday admitted preparing at least 41 fraudulent tax returns for the tax years 2017-2021.

Shasherese M. Reed, 53, pleaded guilty to two counts of aiding and assisting in the preparation of false and fraudulent tax returns. Reed admitted using a tax preparation business, Majac Money, which was opened by her daughter because the IRS revoked the Preparer Tax Identification Number (PTIN) assigned to Reed and her business, Sha-Sha Taxes, in 2015. Reed falsely identified her daughter as the paid preparer on the tax returns that Reed prepared at Majac Money. On these returns, Reed commonly included a false Schedule C that reported tens of thousands of dollars in business expenses, when the taxpayer either had substantially smaller expenses or did not own a business at all. Reed also claimed false and fraudulent deductions for things like state and local taxes, medical and dental expenses and mortgage interest, her plea agreement says.

Reed also admitted preparing a fraudulent tax return for an undercover agent with IRS Criminal Investigation who was posing as a potential client of Majac Money. Without ever asking if the agent had a business, reed prepared a return that included a false Schedule C showing $26,242 in business expenses, the plea agreement says.

Reed charged clients hundreds of dollars in fees for preparing returns, making about $378,026 in fees for the 2017-2021 tax years. Her plea says she prepared at least 41 false tax returns for 13 different taxpayers, costing the IRS at least $312,192.

Reed is scheduled to be sentenced May 6.

IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting case.