Former Detroit tax preparer pleads guilty to preparing false returns


Date: July 18, 2023


DETROIT — A former Detroit tax return preparer has pleaded guilty to committing tax fraud over a four-year span, United States Attorney Dawn N. Ison announced today.

Ison was joined in the announcement by Charles Miller, Special Agent in Charge, Internal Revenue Service Criminal Investigation (CI).

Ann Reid pleaded guilty to preparing and filing tax returns which Reid knew contained false misrepresentations about small businesses for a series of years. In each instance, the false information caused the IRS to provide miscalculated and sizably larger tax refunds.

United States Attorney Ison stated, "Tax cheaters don't just cheat the system, they cheat us all. When those tax cheats are fraudulent tax preparers, like Ann Reid, who cheat on scores of tax returns year after year, the impact of their cheating is multiplied, and the damage they cause is many times worse. Convictions like today's are a key step toward holding such tax cheats accountable."

"Today, Ms. Reid admitted to owning a tax preparation business that blatantly ignored the tax laws by preparing false and fraudulent tax returns," said Charles Miller, Special Agent in Charge, CI, Detroit Field Office. "Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for their clients. CI will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax profession adhere to professional standards and follow the law."

According to the plea agreement, between January 2016 and April 2019, Reid prepared and filed hundreds of tax returns with false information on behalf of taxpayers. The tax returns falsely represented that the taxpayers operated small businesses and included deductions for false expenses and inflated charitable contributions.

Reid now faces possible sentences of up to 3-years' imprisonment, a $100,000 fine, and 1 year of supervised release on each of the five counts to which she has pleaded guilty.

Sentencing is set for October 17, 2023 before United States District Judge Stephen J. Murphy, III.

The case is being prosecuted by Assistant United States Attorney Carl D. Gilmer-Hill. The investigation is being conducted by CI.