St. Louis Tax Preparer Sentenced for Preparing False Tax Returns

ST. LOUIS – U.S. District Judge Rodney W. Sippel on Tuesday sentenced a St. Louis tax preparer to five years of probation and ordered her to pay restitution of $230,000 for preparing fraudulent tax returns.

Shasherese M. Reed prepared at least 41 false tax returns for 13 different taxpayers, costing the IRS at least $312,192. Reed “made up businesses out of thin air and claimed tens of thousands of dollars in false business expenses, false medical and dental expenses, mortgage interest, state and local taxes, and deductible employee expenses, all for the purpose of inflating the refunds her clients would receive from the IRS, often by thousands of dollars per return,” a sentencing memorandum filed by Assistant U.S. Attorney Jonathan Clow says.

Reed falsely identified her daughter as the paid tax preparer on the returns and filed the returns under her daughter’s tax preparation business, Majac Money. She did so because the IRS had revoked the Preparer Tax Identification Number (PTIN) assigned to Reed and her business, Sha-Sha Taxes, in 2015 after the IRS determined Reed had submitted false tax returns.

“(R)ather than be deterred by the previous IRS investigation, Defendant doubled down on her illegal acts,” the sentencing memo says.

During the investigation, Reed prepared a fraudulent tax return for an undercover agent with IRS Criminal Investigation. 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, Reed’s plea agreement says.

Reed charged clients hundreds of dollars for preparing returns, making about $378,026 in fees for the 2017-2021 tax years.

Reed, 53, pleaded guilty in February to two counts of aiding and assisting in the preparation of false and fraudulent tax returns.

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