Evergreen Reporter

A tax preparer in St. Louis has admitted to preparing numerous fraudulent tax returns over several years. Shasherese M. Reed, aged 53, confessed on Monday to two counts of aiding and assisting in the preparation of false and fraudulent tax returns.

Reed utilized a tax preparation business called Majac Money, which her daughter opened after the IRS revoked Reed's Preparer Tax Identification Number (PTIN) in 2015 for her own business, Sha-Sha Taxes. Reed falsely listed her daughter as the paid preparer on the tax returns she completed at Majac Money. These returns often included fabricated Schedule C forms reporting tens of thousands of dollars in fictitious business expenses for taxpayers who either had significantly lower expenses or no business at all. She also claimed fraudulent deductions for state and local taxes, medical and dental expenses, and mortgage interest.

Additionally, Reed acknowledged creating a fake tax return for an undercover IRS Criminal Investigation agent posing as a client at Majac Money. Despite not confirming whether the agent owned a business, Reed prepared a return featuring a bogus Schedule C with $26,242 in business expenses.

Reed charged clients hundreds of dollars per return preparation, accumulating approximately $378,026 in fees from 2017 to 2021. Her plea agreement states she prepared at least 41 false returns for 13 taxpayers, resulting in an estimated loss of $312,192 to the IRS.

Reed's sentencing is set for May 6. The investigation was conducted by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Jonathan Clow.