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El Dorado, Arkansas tax preparer Wanda Reedy jailed 33 months for fake W-2 returns; $640,548 restitution to IRS

The U.S. Attorney's Office for the Western District of Arkansas said on 12 November 2026 that Wanda Reedy, 64, of El Dorado was sentenced on 6 November 2026 to 33 months in federal prison and one year of supervised re…

First reported
Reports
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Source: justice.gov · published

Illustration: Impersonation scams

What happened

The U.S. Attorney's Office for the Western District of Arkansas said on 12 November 2026 that Wanda Reedy, 64, of El Dorado was sentenced on 6 November 2026 to 33 months in federal prison and one year of supervised release, and ordered to pay $640,548 in restitution to the IRS, on three counts of aiding and assisting in the preparation and presentation of false and fraudulent tax returns. According to the plea agreement, from January 2018 to about March 2024 Reedy prepared fraudulent returns for tax years 2017 to 2023 that included falsified wages and federal tax withholdings, backed by fictitious Forms W-2 showing taxpayers had earned wages from a business they never worked for. She waived indictment and pleaded guilty in July 2025. Prosecutors said Reedy was previously sentenced to federal prison in 2011 for false and fraudulent claims to the IRS. IRS Criminal Investigation investigated.

How the scam works

A charge, an arraignment, a witness's testimony or a prosecutor's accusation is not a finding of guilt. People and companies named in these reports are accused, charged or, where the source says so, convicted or sentenced, and they are presumed innocent unless and until a court finds otherwise. Do not treat a news report or a press release as a substitute for a court judgment. If you think you were affected by the same kind of scheme, keep records and report them to the investigating agency named in the source, or to your local police and your bank.

Source

Source: https://x.com/WDARnews/status/2120885962779566454 (@WDARnews, Nov 12, 2026, 9:26 AM ET); https://www.justice.gov/usao-wdar/pr/el-dorado-woman-sentenced-prison-second-time-fraudulent-tax-returns (USAO Western District of Arkansas, 12 Nov 2026)

Red flags

  • A person or company is charged, arraigned or named in a complaint; that is an allegation until a court decides otherwise.
  • A request from someone claiming to 'help recover' money from a case you read about, especially if they ask for an upfront fee.
  • An investment, tax, charity or government programme that cannot be checked with the official agency.
  • Pressure to stay quiet, pay in cash or crypto, or send more money to 'unlock' a refund or a file.

If you were targeted

  1. 1Treat charges and testimony as allegations unless the source reports a conviction, a plea or a sentence.
  2. 2If you think you were affected, keep contracts, receipts and messages and contact the investigating agency or your local police.
  3. 3Be wary of anyone who contacts you offering to recover funds from a case in the news.
  4. 4Do not pay a tax preparer, contractor or investment 'opportunity' you cannot verify independently.

Dothan-area tax preparer Markita Thornton sentenced to 33 months for filing false returns causing $1.6M+ tax loss

The U.S. Attorney's Office for the Middle District of Alabama said on 12 November 2026 that Markita Latrice Thornton, 40, of Cowarts, Alabama, was sentenced on 10 November to 33 months in federal prison and one year o…

  • Markita Latrice Thornton, Cowarts AL; tax preparation business in Dothan, Alabama
  • Tax-preparer false-return prosecutions
Reported Nov 12, 20261 report