Kansas City Tax Preparer Pleads Guilty to False Returns
Teneika Reynolds admitted to aiding in the preparation of false tax returns that produced larger-than-entitled refunds for clients.
Updated on Nov. 4, 2026 in Taxes
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Teneika Reynolds, 50, pleaded guilty before U.S. District Judge Greg Kays to aiding and assisting in the preparation of false tax returns. Reynolds owned and operated TR Tax Service in Kansas City and prepared returns for clients that produced refunds larger than they were entitled to receive.
Why it matters
The guilty plea shows federal prosecutors pursuing tax preparers who file fraudulent claims on behalf of clients. The case involves claims tied to pandemic-era Sick and Family Leave credits, a category of benefit that has drawn scrutiny from federal investigators.
Reynolds pleaded guilty and faces a maximum sentence of up to three years in federal prison without parole. A sentencing hearing will be scheduled after a presentence investigation by the United States Probation Office.
The players
Teneika Reynolds
Reynolds, 50, owned and operated TR Tax Service in Kansas City and pleaded guilty to aiding in the preparation of false tax returns.
Greg Kays
Kays is the U.S. District Judge who accepted Reynolds's guilty plea in the Western District of Missouri.
Internal Revenue Service-Criminal Investigation
IRS-CI is the federal law enforcement division of the Internal Revenue Service that investigated the case.
The details
Reynolds prepared and electronically filed returns that claimed false Schedule C business expenses, false Forms 7202 Sick and Family Leave Credits, and fictitious Household Help income. On February 8, 2022, she aided in filing a Form 1040 containing false Sick and Family Leave credits that resulted in a fraudulent refund.
Timeline
Tax years 2019 through 2023: period covered by the false returns
February 8, 2022: date of a Form 1040 filed with false Sick and Family Leave credits
Legal Context
The case involves false claims under the Sick and Family Leave Credits reported on Form 7202, a benefit that federal enforcement has targeted for misuse. Prosecutions of individual tax preparers, rather than only the taxpayers who receive refunds, reflect the scrutiny now applied to professional filers.
Taxpayers who use paid preparers should confirm that claimed credits and deductions are supported by their own records before filing. Refunds larger than expected can later be reviewed and may require repayment with penalties.
The takeaway
Reviewing a return before signing it protects taxpayers from liability when a preparer's errors or fraud produce an unexpectedly large refund.
Further reading
Explore more on Taxes to see how refund claims and preparer obligations work.
Source note: This article includes information reported by The United States Department of Justice.
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