A woman from Maryland has been officially charged with filing false tax returns for others and not filing her own tax returns. A federal grand jury in Greenbelt, Maryland, returned the indictment against Zewdi Tsegay, a resident of Burtonsville, which was unsealed recently.
Who is Zewdi Tsegay?
Zewdi Tsegay ran a tax preparation business called Taxes R Us LLC, which later changed its name to Taxes 4 You LLC. She provided tax return services for clients in Maryland. However, according to the charges, she was not handling the work honestly.
What Are the Allegations?
The indictment claims that from 2018 to 2024, Tsegay prepared and submitted false tax returns to the IRS on behalf of her clients. These fake returns included made-up business losses. The purpose of these losses was to either lower the client’s tax bills or to get them refunds they didn’t actually deserve.
In March 2020, the IRS conducted an undercover operation. An undercover agent went to her office as a client. At first, Tsegay prepared the return correctly, which showed the agent owed taxes. But then, she reportedly added a fake business loss to the form, which changed the return to show a refund—something the agent was not really owed.
The indictment also mentions that between 2021 and 2023, Tsegay was required to file her own tax returns but failed to do so.
Possible Punishment
If found guilty, Tsegay could face serious penalties. Each count of filing a false return could lead to a maximum of three years in prison, and each count of failing to file her own returns could mean up to one year in prison. Her final sentence will be decided by a federal judge after reviewing all legal guidelines and other details.
Who Is Handling the Case?
The investigation is being led by the IRS Criminal Investigation team. The announcement was made by Acting Deputy Assistant Attorney General Karen E. Kelly from the Justice Department’s Tax Division. The case is being prosecuted by Trial Attorneys Catriona M. Coppler and Richard Kelley of the Tax Division.
Legal Reminder
It is important to understand that an indictment is not proof of guilt. Zewdi Tsegay is still considered innocent until proven guilty in court beyond a reasonable doubt.
Why It Matters
This case highlights how serious tax fraud is, not just for the government but also for clients who might unknowingly be part of illegal activity. Tax preparers are trusted with personal financial data, and any misuse of that trust can lead to heavy penalties. The IRS continues to monitor such cases closely to make sure the system remains fair for all.
