Federal prosecutors say a Las Vegas tax operation turned refund season into a lucrative side hustle, and now three people are facing felony charges over it.
A federal grand jury on Thursday indicted three Las Vegas tax preparers who worked at CashBack Tax Service, accusing them of cooking up returns that inflated clients' refunds with made-up businesses, bogus expenses and false pandemic-related credits. The indictment names Jadee Glover, described by prosecutors as the owner of CashBack, along with preparers Julia Brainerd and Shamoya Perkins. Prosecutors allege the trio filed returns that generated refunds clients were not actually entitled to, with a slice of that money allegedly looping back to the shop as preparation fees.
Indictment details
According to the Department of Justice, the grand jury returned the indictment on July 23, charging all three with conspiracy to defraud the United States and with willfully preparing false income tax returns. Prosecutors say the alleged playbook included reporting entirely fictitious businesses on some returns and inventing receipts and expenses for businesses that clients actually owned. The indictment also alleges that the defendants claimed false credits by stating clients missed work either because they contracted COVID-19 or because they were caring for relatives who had COVID-19.
Potential penalties and investigators
If convicted, each defendant faces up to five years in prison on the conspiracy charge and up to three years for every count of willfully aiding and assisting in the preparation of false tax returns, along with possible supervised release, restitution and fines, FOX5 reports. The outlet also notes that the case is being investigated by IRS Criminal Investigation and is set to be prosecuted by trial attorneys from the Justice Department’s Tax Division.
How prosecutors say the scheme worked
The indictment alleges that part of the inflated refunds was routed back to CashBack Tax Service as preparation fees, deepening the shop's cut every time a return grew larger. Brainerd and Perkins are also accused of preparing false returns through separate businesses they ran: Royalty Tax Services and Jewels Tax Services, respectively, the Department of Justice states. Trial Attorneys Regina Jeon and Megan E. Wessel of the Criminal Division’s Tax Division are assigned to prosecute the case. The government adds a familiar reminder in its release: "An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law."
Part of a wider enforcement push
The new charges land as federal authorities ramp up enforcement on pandemic-era tax schemes in Nevada, including a recent COVID-credit case that ended in prison time for another Las Vegas tax professional, as Vegas Tax Pro Gets Prison detailed. Officials have brought multiple cases this year aimed at preparers and operators accused of securing inflated refunds and bogus credits, with federal agents casting the work as part of a broader effort to clamp down on fraud tied to pandemic relief programs.
What to do if you used CashBack
If you used CashBack Tax Service and are now worried about your return or an IRS notice in your mailbox, start by carefully reviewing any letters from the agency and consider reporting suspected tax fraud using the IRS "Report Fraud" tools or Form 3949-A on IRS.gov. Local reporting warns that affected clients could face audits, repayment of improper refunds and potential penalties, so anyone who thinks they might be caught up in the situation should reach out to a tax attorney or contact the IRS Criminal Investigation tip line for guidance, FOX5 notes.
