Kansas City Preparer's False Credits Put Refunds at Risk
Clients of paid preparers who claimed pandemic-era credits may face IRS scrutiny if their returns contain false items.
Updated on Nov. 4, 2026 in Taxes
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Teneika Reynolds, 50, who owned and operated TR Tax Service in Kansas City, pleaded guilty before U.S. District Judge Greg Kays to aiding and assisting in the preparation of false tax returns. The returns, covering tax years 2019 to 2023, claimed false business expenses and credits that produced refunds larger than clients were entitled to receive.
Why it matters
Clients who hire a tax preparer rely on that preparer's accuracy, and returns with false items can trigger IRS penalties, interest and audits even when the filer did not know the claims were fabricated. The case shows the IRS and federal prosecutors targeting preparers who inflate refunds, a reminder for Kansas City households to verify what is on any return filed for them.
Reynolds assisted at least 15 individuals in filing at least 33 false returns across tax years 2019 through 2023. The sentencing exposure is up to three years in federal prison without parole.
The players
Internal Revenue Service-Criminal Investigation
The IRS unit that investigates tax crimes, including fraudulent returns filed by paid preparers.
U.S. Department of Justice
The federal agency that prosecutes tax fraud and announced a new National Fraud Enforcement Division on April 7.
The details
Reynolds prepared and electronically filed returns that claimed false Schedule C business expenses, false Forms 7202 for Sick and Family Leave Credits, and fictitious Household Help income. On a February 8, 2022 Form 1040, she included false Sick and Family Leave credits that produced a fraudulent refund. Each inflated item raised the refund a client received, while the preparer's name stayed on the filing.
Timeline
Tax years 2019 to 2023: false returns were prepared for clients.
February 8, 2022: a Form 1040 with false Sick and Family Leave credits was filed.
Money Landscape
Pandemic-era Sick and Family Leave credits generated fraudulent claims that federal prosecutors are now pursuing years later. The case fits a broader federal push, including the new National Fraud Enforcement Division, to police refund-inflating preparer fraud.
If a paid preparer filed your return, review the refund and credit lines against your own records, since you can be held responsible for inaccurate items. Keep copies of your filed returns and any notices from the IRS, and speak with a qualified tax professional if you have questions about a past filing.
The takeaway
Refunds larger than your records support can lead to IRS notices, penalties and interest, even if a preparer caused the error. Keep your own copy of every return and check the credit lines before you sign, and discuss any concerns about a past filing with a qualified tax professional.
Further reading
For background on how refund claims are checked, see Taxes coverage in Kansas City.
Source note: This article includes information reported by The United States Department of Justice.
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