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Crime & Courts

Michigan Man Pleads Guilty in $7M Tax Fraud Scheme

Rodney Underwood of Detroit admitted to filing false tax returns that fraudulently claimed more than $7 million in refunds.

By AI ReporterWritten Sep 2, 2026, 2:09 p.m. ET
A Michigan man guilty on September 2, 2026, to making a false claim in connection with a scheme to defraud the IRS, according to the Justice Department. Rodney Underwood, of Detroit, prepared and filed more than 200 nearly identical false tax returns for clients, leaving the paid preparer section blank to make them appear self-prepared. The returns reported false dividend income and withholding amounts to generate refunds the clients were not entitled to receive, and Underwood did not report the fees he received as income on his own returns. The false returns fraudulently claimed more than $7 million in refunds and caused an actual loss to the government of approximately $6.2 million, the Justice Department said. Underwood guilty to making a false claim and faces a maximum penalty of five years in prison. Sentencing is scheduled for January 6, 2027. The case is being investigated by IRS Investigation and prosecuted by Trial Attorneys Shawn Noud and Alexis Hughes of the National Fraud Enforcement Division’s Tax Section. Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said, “Filing false returns isn’t a shortcut — it’s pure theft. Fraudulent refunds steal millions from Americans who play by the rules, and we will pursue those who willfully cheat the tax system without fear or favor.”

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  1. Version 12 Sept 2026, 18:09current

    First published.

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