Sherri Davis and her son, Andre Davis, were charged in a superseding indictment with conspiring to defraud the Internal Revenue Service (IRS) and with aiding and assisting in the preparation of false individual income tax returns, the Justice Department and IRS announced today. Sherri Davis was also charged with filing her own false individual income tax returns for tax years 2007 to 2009.
According to the superseding indictment, Sherri Davis was the previous owner and operator of 2FT Fast Facts Tax Service, a tax return preparation business located in Washington, D.C. Andre Davis is the current owner and operator of Davis Financial Services (DFS), a tax return preparation business also located in Washington, D.C. From January 2006 through April 15, 2013, Sherri Davis and Andre Davis conspired with others to defraud the IRS by preparing and filing false income tax returns that contained fraudulent deductions, expenses, losses and credits to which 2FT and DFS clients were not entitled, thereby generating fraudulent income tax refunds.
The superseding indictment alleges that Sherri Davis and Andre Davis falsified tax documents for 2FT and DFS clients in order to reduce their taxable income and to get a larger refund than what the client was entitled to receive. The superseding indictment also alleges that from 2007 through 2009, Sherri Davis filed her own false individual income tax returns which underreported 2FT’s gross receipts and falsely claimed business losses for 2FT.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy charge, the defendants face a statutory maximum sentence of five years in prison and a $250,000 fine. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a statutory maximum sentence of three years in prison and a fine of $250,000 for each count.
The case is being prosecuted by Trial Attorneys Jessica Moran, Tiwana Fleming and Mark McDonald of the Justice Department’s Tax Division and was investigated by special agents of IRS-Criminal Investigation.