Raymore Woman Pleads Guilty to Tax Refund Fraud Scheme

Teneika Reynolds, 50, pleaded guilty before U.S. District Judge Greg Kays, to aiding and assisting in the preparation of false tax returns.

Reynolds was the owner and operator of TR Tax Service, a tax preparation business operating in Kansas City. Reynolds prepared and electronically filed returns claiming false items including Schedule C business expenses, false Forms 7202, Sick and Family Leave Credits, and fictitious Household Help income for client-taxpayers for the tax years 2019 to 2023. This resulted in refunds larger than what her clients were entitled to receive.

Reynolds assisted at least 15 individuals file at least 33 false and fraudulent income tax returns for tax years 2019 through 2023. Specifically, on Feb. 8, 2022, Reynolds aided and assisted in the filing of an IRS Form 1040, U.S. Individual Income Tax Return, with the Internal Revenue Service. On that form, Reynolds included false Sick and Family Leave credits, resulting in a fraudulent refund.

Under federal statutes, Reynolds is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of Reynolds will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by Internal Revenue Service-Criminal Investigation.

National Fraud Enforcement Division

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.