Tax Preparer Sentenced for Fraudulent Returns

A tax preparer from Winston-Salem, North Carolina, has been sentenced to prison for his role in aiding and assisting in the preparation of fraudulent tax returns.

Shannon DeWayne Patterson, who is also licensed as an attorney in Georgia, was sentenced to 13 months in prison for his crimes. Patterson co-owned and operated tax preparation businesses named ‘Fast Tax’ in Winston-Salem, Salisbury, and Kannapolis, North Carolina.

According to court documents, between January and May 2015, Patterson instructed his employees to fabricate information on the tax returns they prepared, in an effort to increase the refunds paid to their clients. As a result, more than $60,000 in fraudulent tax refunds were sought from the Internal Revenue Service (IRS).

Patterson also filed false personal tax returns for 2014 and 2015, on which he underreported his income. In addition to the term of imprisonment, Patterson was sentenced to one year of supervised release, and was also ordered to pay restitution in the amount of $60,800 to the IRS.

Two of Patterson’s employees, Kristyn Dion Daney and Rakeem Scales, have also been involved in the case. Both pleaded guilty in April to preparing a false tax return for an IRS undercover agent and are awaiting sentencing. Patterson’s co-owner in Fast Tax, Claudia Shivers, has also pleaded guilty to conspiring with Patterson and is awaiting sentencing.

Principal Deputy Assistant Attorney Richard Zuckerman and U.S. Attorney Matthew G.T. Martin thanked special agents of IRS Criminal Investigation, who conducted the investigation, and former Tax Division Trial Attorney Robert J. Boudreau and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who prosecuted the case.

The case is a reminder of the importance of tax integrity and the consequences of those who engage in tax fraud. The Tax Division will continue to vigorously pursue those who commit tax crimes and seek to undermine the integrity of our tax system.

Additional information about the Tax Division’s enforcement efforts can be found on their website.