Cleveland, Ohio – A Cleveland woman is now facing federal charges after investigators uncovered what officials describe as a pattern of preparing and filing false tax returns on behalf of her clients, raising concerns about fraudulent practices within tax preparation services.
Sherita Booker, 46, was charged with a criminal complaint on April 9 for Aiding or Assisting in the Preparation of False and Fraudulent Federal Income Tax Returns. The charge comes after an investigation that examined how she handled tax filings for multiple individuals over a period of time.
Alleged scheme involving false business claims
According to court documents, Booker first gained experience in tax preparation while working at a national tax return preparation company between June 2016 and April 2017. After leaving that role, she began operating her own tax preparation business, using different entity names as well as her own name to conduct her services.
Investigators allege that Booker used deceptive methods while preparing tax returns for her clients. One of the primary concerns outlined in the case involves the use of fraudulent Schedule C forms. These forms are typically used to report profit or loss from a business, but agents found that Booker allegedly attached them to clients’ Form 1040 filings even when those clients did not own or operate any business.
By doing so, the filings may have created false claims of business losses, which could reduce the amount of taxes owed. Authorities also state that Booker used additional methods to avoid taxes that should have been paid to the Internal Revenue Service.
The investigation was carried out by Internal Revenue Service Criminal Investigation agents, who reviewed the returns and identified patterns that led to the charges.
If convicted, Booker could face serious penalties. Each count carries a potential sentence of up to three years in prison. However, the final outcome will depend on a federal district court judge, who will consider the U.S. Sentencing Guidelines and other legal factors when determining any sentence.
Assistant United States Attorneys Brenna L. Fasko and Elliot Morrison for the Northern District of Ohio are handling the prosecution. As the case moves forward, it serves as a reminder of the legal risks tied to filing inaccurate or misleading tax information.
