Zewdi Tsegay, False Tax Return, Maryland 2023

A Maryland woman has been sentenced to prison for preparing false tax returns for clients.

According to court documents and statements made in court, Zewdi Tsegay, of Burtonsville, Maryland, operated a tax preparation business initially called Taxes R Us LLC.

From 2017 through 2023, Tsegay prepared and filed with the IRS false tax returns on behalf of clients. These tax returns included false business losses that resulted in either the clients receiving tax refunds that they were not entitled to receive or the clients’ tax liabilities being decreased.

After Tsegay learned she was under investigation, she changed the name of the business to Taxes 4 You, LLC.

On an unknown date, the IRS conducted an undercover operation at Tsegay’s return preparation business. Tsegay initially prepared the undercover agent’s tax return correctly, which reflected that the undercover agent owed taxes. Tsegay then added a fictitious business loss to the undercover agent’s tax return, which resulted in the return improperly claiming a refund.

Tsegay pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return. In addition to the term of imprisonment, Tsegay was ordered to serve one year of supervised release and to pay $178,480 in restitution to the United States.

Tsegay caused a tax loss to the United States between $250,000 and $550,000.

A Maryland woman, Zewdi Tsegay, was sentenced to 12 months and one day in prison for preparing false tax returns.

Tsegay is a resident of Burtonsville, Maryland.

She was sentenced by U.S. District Judge Theodore D. Chuang.

Source: https://www.justice.gov/opa/pr/maryland-tax-return-preparer-sentenced-prison-preparing-false-returns