Milwaukee tax preparer pleads guilty in federal fraud case

A Milwaukee woman pled guilty this week to one count of aiding in the preparation of false tax returns in federal court.

According to the plea agreement, Jasmeika Simon worked as a tax preparer at Ultimate Taxes & More, a Georgia-based company that runs franchises around the country. She prepared and filed federal tax returns for clients for a fee. For the 2021, 2022 and 2023 tax years, Simon electronically filed approximately 361 federal tax returns with the IRS. Of those, approximately 331 contained indicators and evidence of fraud.

Most of the 1040 tax returns filed by Simon on behalf of her clients reported materially false income related to business income and losses, household employee wages, and/or ordinary dividends. They also reported a variety of materially false refundable credits and other payments including sick and family leave credits, child and dependent care credits, fuel tax credits, IRC Section 1341 credits, and/or false income tax withholdings.

As a result of Simon’s material misrepresentations, her clients received larger refunds that they weren’t entitled to, which increased Simon’s commissions. Throughout the course of her scheme, Simon intended a loss to the IRS of approximately $3,337,051, and caused an actual tax loss, based on fraudulent refunds paid, of $1,832,477.

Due to her fraudulent conduct, Simon also obtained approximately $234,508 in fees and commissions to which she was not entitled.

Simon faces up to three years imprisonment and a fine of up to $250,000. She will be sentenced by U.S. District Court Judge Brett H. Ludwig on June 8.