Shasherese M. Reed, a St. Louis tax preparer, pleaded guilty to preparing at least 41 fraudulent tax returns over four years. She was charged with two counts of aiding in the preparation of false returns, according to the U.S. Attorney's Office.
Reed, 53, was involved in a fraudulent tax scheme using her daughter’s business, Majac Money, after her own tax business, Sha-Sha Taxes, had its Preparer Tax Identification Number revoked in 2015. She falsely listed her daughter as the paid preparer on the fraudulent returns and fabricated Schedule C documents, including fake business expenses and unwarranted deductions like state taxes and medical bills, to inflate returns and increase refunds. Reed used this method to secure higher refunds and preparation fees, regardless of whether clients incurred the reported costs or owned businesses, as reported by the U.S. Attorney's Office.
From 2017 to 2021, Reed prepared fraudulent tax returns, including one for an undercover IRS Criminal Investigation agent. She falsely included a Schedule C showing $26,242 in business expenses, despite the agent not owning a business. This resulted in $378,026 in fees for Reed and $312,192 in losses for the IRS. Reed is set to be sentenced on May 6. The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Jonathan Clow, as stated by the U.S. Attorney's Office.
