HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Places » U.S. » California (Group) » Inland Empire Tax Prepare...

Tue Dec 3, 2019, 06:23 AM

Inland Empire Tax Preparer Sentenced to More Than 3 Years in Prison for Filing Bogus Returns that

Inland Empire Tax Preparer Sentenced to More Than 3 Years in Prison for Filing Bogus Returns that Cheated IRS Out of Millions of Dollars


LOS ANGELES A Riverside County tax preparer was sentenced today to 41 months in federal prison for defrauding the IRS out of more than $2.1 million by submitting phony tax returns, including ones that maximized fraudulent refunds through child tax credits and bogus businesses for hundreds of his clients.

Dennis L. Reed II, 31, of Hemet, was sentenced by United States District Judge Otis D. Wright II, who also ordered Reed to pay $2,158,337 in restitution to the IRS. Reed pleaded guilty on September 3 to two counts of aiding and assisting in the preparation of false income tax returns.

Between 2014 and 2019, Reed prepared hundreds of federal and state income tax returns containing false claims designed to generate or increase fraudulent tax refunds. For example, the fraudulent tax returns falsely claimed that the taxpayers had dependents, operated a sole proprietorship, or were entitled to receive credits for certain educational expenses.

As part of the tax fraud, Reed prepared at least 384 returns that falsely stated that the client had earned income from Schedule C sole proprietorships, which are tax forms used by the self-employed to report business profits or losses. Reed created false Schedule C businesses such as hairstylist or barber for these clients. In reality, Reed knew his clients did not work at all during the year, had not earned income, and were not required to file an income tax return.

Read more: https://www.justice.gov/usao-cdca/pr/inland-empire-tax-preparer-sentenced-more-3-years-prison-filing-bogus-returns-cheated

0 replies, 576 views

Reply to this thread

Back to top Alert abuse

Reply to this thread