Man with Pierce County tax businesses accused of preparing false returns
A Lakewood man accused of preparing false returns at his Pierce County tax businesses pleaded not guilty at arraignment Friday in federal court.
Cleo J. Reed Jr., 51, is charged with conspiracy to defraud the United States and seven counts of aiding in the preparation of false tax returns.
He opened and ran Just Us Tax Service in 2011 and 2012 and later merged it with Young’s Tax Service, the U.S. Attorney’s Office said in a press release.
“The companies filed tax returns falsely claiming high rates of Earned Income Tax Credits (EITC) to increase clients’ tax refunds and therefore the fee they would receive for tax preparation,” the press release said.
Reed started Just Us Tax Service at the same time his father’s tax business was being investigated for fraud, the U.S. Attorney’s Office said. His father ultimately went to prison. Reed allegedly had someone else open Young’s Tax Service in 2014 when the IRS terminated Reed’s tax preparation registration.
He filed fraudulent returns from home, the marijuana dispensary he owned and where he worked at the Sumner School District, prosecutors allege.
They’re still calculating the alleged illegal gain.
