Semere Tsehaye Sentenced for $1.03 Million Tax Fraud

ST. LOUIS – Semere Tsehaye, the operator of a St. Louis-based tax preparation business, has been handed a 27-month prison sentence after being convicted on two counts of tax evasion.

Court records reveal that Tsehaye, who ran at least 20 Instant Tax Service (ITS) franchises in Illinois, Kansas, and Missouri from 2005 to 2011, manipulated his financial summaries to underreport gross receipts by nearly $1.6 million between 2010 and 2011.

Acting Deputy Assistant Attorney General Stuart M. Goldberg emphasized the severity of Tsehaye’s crime, stating, ‘As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the IRS, and yet ignored his responsibilities in an effort to cheat the system.’

Tsehaye’s fraudulent activities resulted in a total of approximately $581,264 in unpaid taxes. Karl Stiften, Special Agent in Charge of IRS Criminal Investigation in St. Louis, echoed the sentiment: ‘Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished, and Mr. Tsehaye will now pay the price for his crimes.’

In addition to his prison term, Tsehaye was ordered to serve three years of supervised release and to pay $298,178 in restitution to the IRS.

Acting Deputy Assistant Attorney General Goldberg commended the special agents of IRS-CI who conducted the investigation, as well as Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. The U.S. Attorney’s Office for the Eastern District of Missouri was also thanked for their substantial assistance.