Jennifer Sherman, Tax Return Preparer Fraud, Michigan 2024

Federal Court Shuts Down Detroit-Area Tax Return Preparer

A federal court in the Eastern District of Michigan has permanently barred a Detroit-area tax return preparer and her business from preparing federal tax returns for others.

The injunction was entered against Jennifer Sherman and her tax preparation business, Sherman Management Co. Inc., according to a complaint filed against the defendants. Sherman and her company had returns prepared that reported false business income and expenses and claimed excessive deductions, resulting in undeserved refunds.

The complaint also alleged that Sherman impermissibly lowered some of her customers' tax liabilities by falsely claiming head of household status for individuals not entitled to claim it. According to the complaint, the fraudulent tax returns that Sherman and her business prepared for customers cost the United States hundreds of thousands of dollars in tax revenue.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department's Tax Division made the announcement. 'Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant,' Hubbert said.

The IRS has information on its website for choosing a tax preparer and offers information on how to avoid 'ghost' tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of steps to make the 2022 filing season easier.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department's website.

The defendant, Jennifer Sherman, and her business, Sherman Management Co. Inc., were permanently barred from preparing federal tax returns for others as a result of the injunction. The exact date of the injunction was not specified in the source.

According to the complaint, the fraudulent tax returns prepared by Sherman and her business cost the United States hundreds of thousands of dollars in tax revenue.

The case highlights the importance of taxpayers being vigilant when seeking a return preparer. The IRS offers information on its website for choosing a tax preparer and has a list of steps to make the 2022 filing season easier.

Source: https://www.justice.gov/archives/opa/pr/federal-court-shuts-down-michigan-tax-return-preparer