D.C. Mother, Son Convicted in Tax Conspiracy

A woman and her adult son each were found guilty of one count of aiding and assisting in the preparation and filing of false tax returns and one count of conspiracy to defraud the United States.

Sherri Davis, 42, was convicted of another 24 counts of aiding and assisting in the preparation and filing of false federal income tax returns, and three counts of filing false personal income tax returns.

From 2003 to 2012, Sherri Davis owned and operated 2FT Fast Facts Tax Service. In 2012, the business name was changed to Davis Financial Services and her son, 24-year-old Andre Davis, was listed as the owner and operator.

At trial, evidence showed Sherri and Andre Davis falsified schedules, deductions, expenses and credits to reduce taxes owed and increase returns for their clients. On some returns, the Schedule C business claimed on the return was completely fabricated. On other returns, the Schedule A included false or grossly inflated gifts to charity, job expenses and other miscellaneous expenses.

Further evidence indicated Sherri Davis filed her own false income tax returns in which she failed to report more than $300,000 in tax preparation fees that she received from her business.

Sherri and Andre Davis will be sentenced April 29 in U.S. District Court. The conspiracy conviction has a statutory maximum sentence of five years in prison and a $250,000 fine. Each of the remaining counts has a statutory maximum sentence of three years in prison and fine of $250,000.

“Intentionally preparing false tax returns is a criminal offense that reflects badly on the entire industry,” said Special Agent in Charge Thomas J. Kelly of the IRS. “As Sherri and Andre Davis found out today, it is not a good idea to file false tax returns and expect the IRS not to investigate and recommend prosecution. [We are] committed to holding individuals accountable for their criminal actions.”

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