Gulfport tax preparer pleads guilty to helping file false tax returns

A Gulfport man pleaded guilty Thursday to preparing false federal tax returns for clients.

Orland Reed is scheduled to be sentenced Sept. 22 and faces a maximum penalty of three years in prison as well as supervised release, restitution and monetary penalties.

According to court documents and statements made in U.S. District Court, Reed worked at a Gulfport tax 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.

 

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