Owner of Kansas Tax Preparation Firm Sentenced to Prison for Eight Years for Filing Fraudulent Tax Returns

Caused Tax Loss of More than $550,000

2018-01-18

A former resident of Overland Park, Kansas, was sentenced to 96 months in prison for aiding and assisting in the preparation and presentation of false income tax returns, on January 17, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.

According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.

In addition to the term of imprisonment, U.S. District Court Judge Julie A. Robinson ordered Reece to serve one year of supervised release and to pay $648,442 in restitution to the Internal Revenue Service (IRS). Reece pleaded guilty in October 2017 to aiding and assisting in the preparation and filing of false and fraudulent tax returns.

Source: U.S. Department of Justice