02/19/2026
Brad D. Schimel, United States Attorney for the Eastern District of Wisconsin, announced that on January 28, 2026, a Milwaukee, Wisconsin, tax preparer pled guilty to one count of Aiding in the Preparation of False Tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to the plea agreement, she worked as a tax preparer who prepared and filed federal tax returns for clients for a fee. For the 2021, 2022, and 2023 tax years, she 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 the tax preparer 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 her material misrepresentations, her clients received larger refunds to which they were not entitled, which increased her commissions. Throughout the course of her scheme, she intended to cause a loss to the IRS of approximately $3,337,051 and to cause an actual tax loss, based on fraudulent refunds paid, of $1,832,477.
As a result of her fraudulent conduct, she also obtained approximately $234,508 in fees and commissions to which she was not entitled.
This tax preparer faces up to 3 years imprisonment and a fine of up to $250,000. She will be sentenced by United States District Court Judge Brett H. Ludwig on June 8, 2026.