Thursday, June 9, 2022

A Gulfport, Mississippi, man pleaded guilty today to preparing false federal tax returns for clients.

According to court documents and statements made in court, Orland Reed worked at a Gulfport tax return preparation business. Between 2012 and 2014, Reed prepared tax returns for clients that included false household help income, education credits, dependent information and federal income tax withholdings, in an effort to generate larger refunds from the IRS than the clients were entitled to receive. At times, Reed also listed a different tax preparer even though he prepared the returns himself.

In addition to preparing false tax returns, on at least two occasions Reed diverted for his own use clients’ refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards. Reed withdrew some of the funds on the cards before delivering them to the clients.

Reed is scheduled to be sentenced on Sept. 22 and faces a maximum penalty of three years in prison for helping his clients file false returns. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi are prosecuting the case.