United States vs. Cedric Reid & Advance Tax Group Tax Fraud Lawsuit, Full Case Breakdown

This article covers an active civil lawsuit. Information is based on the complaint as filed and verified public sources. This page will be updated as the case develops.

The United States vs. Cedric Reid, Juan Santana, and Advance Tax Group Inc. is a civil injunction lawsuit in which the U.S. Department of Justice alleged that the defendants prepared fraudulent federal tax returns for customers in Florida, and asked a federal court to permanently bar them from preparing tax returns for others. The complaint was filed in the U.S. District Court for the Southern District of Florida. The government claims the defendants caused over $7,000,000 in estimated tax losses in 2023 and 2024 through fraudulent filings and credits. The case is active and no injunction has yet been entered.

Quick Facts

Field	Detail
Plaintiff	United States of America
Defendants	Cedric Reid; Juan Santana; Advance Tax Group Inc.
Case Type	Civil Tax Injunction / Business Fraud
Court	U.S. District Court, Southern District of Florida
Case Number	1:26-cv-23006
Date Filed	April 28, 2026
Legal Claim	Injunction under 26 U.S.C. § 7407; penalty provisions under 26 U.S.C. §§ 6694 and 6695
Relief Sought	Permanent injunction barring defendants from preparing federal income tax returns
Current Stage	Active — complaint filed; no hearing date yet confirmed
Next Scheduled Date	TBD — case was filed April 28, 2026; no scheduling order yet on public record
Attorneys of Record (Plaintiff)	Meredith Hollman and Amanda Cornwell, U.S. Department of Justice, Civil Division, Tax Litigation Branch
Last Updated	April 30, 2026

Case Timeline

Date	Event
April 28, 2026	Complaint filed in U.S. District Court, Southern District of Florida
April 29–30, 2026	DOJ public announcement issued; media coverage begins
TBD — no scheduling order yet confirmed	Initial hearing / scheduling conference
TBD — no trial date set	Any further proceedings

What Is the United States vs. Cedric Reid & Advance Tax Group Lawsuit About? United States v. Reid et al., No. 1:26-cv-23006

The Justice Department filed a complaint in the U.S. District Court for the Southern District of Florida seeking to enjoin — meaning legally bar — Florida-based tax return preparers Cedric Reid, Juan Santana, and Reid’s business, Advance Tax Group Inc., from preparing federal income tax returns for others. An injunction is a court order that prohibits a person or business from continuing a specific action.

The complaint alleges that the defendants prepared federal income tax returns for customers on which they claimed fraudulent deductions and credits, purposely underreporting the tax their customers owed and claiming refunds their customers were not entitled to receive. According to the filing, the defendants’ alleged conduct included falsifying filing status, reporting false or inflated business expenses and losses, and claiming false fuel tax credits, education credits, and other credits.

The government’s legal basis is 26 U.S.C. § 7407, the provision of the Internal Revenue Code that authorizes a federal district court to bar a return preparer from continuing to operate when a court finds that their conduct has caused or is likely to cause substantial harm to the government or taxpayers. The DOJ is also relying on penalty provisions under 26 U.S.C. §§ 6694 and 6695, which cover preparer misconduct and failures to comply with due diligence requirements.

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Who Are Cedric Reid, Juan Santana, and Advance Tax Group?

Cedric Reid is identified in the complaint as a Florida-based tax return preparer and the owner of Advance Tax Group Inc. (ATG), a tax preparation business operating out of offices in Daytona Beach and Ocala, Florida. The DOJ complaint alleges that Reid set the fee structure within the tax preparation software used by the business and that he personally prepared returns containing fabricated deductions. According to the complaint, Reid allegedly attached false Schedule C forms to customers’ returns without their knowledge — in one documented example, claiming a combined net loss of over $36,000 for a single customer who had not authorized those entries.

Juan Santana is named as a co-defendant and a preparer who worked within the Advance Tax Group operation. According to the complaint, Santana allegedly inflated refund amounts without customers’ knowledge and pocketed the difference — in one instance telling a customer his refund was $7,814 while filing for $9,484 and keeping the $1,670 gap.

The complaint also alleges that ATG preparers required little information from customers, used no intake sheets, and asked few questions — a pattern the government argues enabled the alleged fraud to continue. The complaint further notes that some ATG preparers lacked their own Preparer Tax Identification Numbers (PTINs) and used the PTINs of Reid, Santana, and another preparer named Llubares.

What Is at Stake in This Lawsuit?

The United States is seeking a permanent injunction — a court order that would prohibit Reid, Santana, and Advance Tax Group Inc. from ever preparing federal income tax returns for compensation again. This is a civil action, not a criminal prosecution, meaning the government is not seeking prison time through this complaint. The legal remedy is professional prohibition and the elimination of ongoing harm to the U.S. Treasury.

Federal authorities estimate the defendants caused over $7,000,000 in tax losses in 2023 and 2024 alone. If the court grants the permanent injunction, the defendants would be legally barred from operating any tax preparation business going forward. Violating a federal injunction can result in contempt of court, which can carry civil or criminal penalties.

The case also carries significant implications for the defendants’ customers. According to the complaint, the defendants profited by fraudulently inflating customers’ tax refunds while skimming off hundreds of dollars in undisclosed fees from those same refunds. Customers who received improper refunds may face IRS audits and repayment demands, even though — based on the complaint’s allegations — many were unaware their returns had been falsified.

What Happens Next in This Case?

The complaint was filed on April 28, 2026. The defendants must be formally served, after which they will have an opportunity to respond. The court will then set a scheduling order that establishes deadlines for motions, discovery, and any hearings. In civil injunction cases brought by the DOJ under 26 U.S.C. § 7407, courts may enter a preliminary injunction early in the proceedings — temporarily halting the defendants’ tax preparation activities while the case is resolved — or move directly to a hearing on a permanent injunction.

In the past decade, the Department of Justice has obtained injunctions against hundreds of tax preparers accused of misconduct. In some of those cases, courts have also ordered defendants to disgorge — meaning pay back — fees collected through fraudulent filings. Whether the government will seek disgorgement here is TBD — no such demand is specified in the currently available complaint summary.

All upcoming hearing and trial dates are TBD — no scheduling order has been entered as of April 30, 2026.

Frequently Asked Questions

1. Who filed this lawsuit and why?

 The United States Department of Justice filed this lawsuit on April 28, 2026. The DOJ alleged that Cedric Reid, Juan Santana, and Advance Tax Group Inc. prepared federal income tax returns that claimed fraudulent deductions and credits, underreported customers’ tax liabilities, and sought refunds customers were not entitled to receive.

2. What court is handling this case?

 The case is before the U.S. District Court for the Southern District of Florida, filed under Case No. 1:26-cv-23006. The Southern District of Florida handles federal civil and criminal matters for a large portion of the state.

3. What is the current status of the case? 

The case is active. The complaint was filed on April 28, 2026. As of April 30, 2026, no hearing date, scheduling order, or preliminary injunction has been entered on the public docket.

4. How much is the government claiming in damages?

 The United States is not seeking a money judgment in this complaint — it is seeking a permanent injunction to shut down the defendants’ tax preparation operation. However, the government has estimated the defendants’ alleged conduct caused over $7,000,000 in tax losses in 2023 and 2024.

5. Can I read the court documents?

 Yes. The complaint is a public record filed in the U.S. District Court for the Southern District of Florida. The full complaint is available through the DOJ’s official press release and on PACER (the federal court’s online document system) under Case No. 1:26-cv-23006. The DOJ also published the complaint directly at justice.gov.

6. Is this a criminal case? 

No. This is a civil lawsuit. The DOJ filed a civil complaint seeking an injunction — a court order barring the defendants from preparing tax returns. The defendants have not been criminally charged or indicted in connection with this specific complaint. Civil and criminal proceedings are distinct; a civil injunction does not require the government to prove guilt beyond a reasonable doubt.

7. What did the defendants allegedly do to customers?

 According to the complaint, defendants allegedly required little information from customers, filed returns with fabricated business losses and false credits without customers’ knowledge, and in some cases skimmed money from customers’ refunds without disclosure. The complaint alleges customers were unaware their returns had been altered.

8. What happens to customers who received false refunds?

 Customers who filed returns through Advance Tax Group may be subject to IRS audits and required to repay any refunds that were improperly claimed — even if they were unaware of the fraud. The IRS provides a process for taxpayers to report a fraudulent preparer and to seek relief if they were harmed by one. Affected taxpayers should consult a qualified tax professional or attorney.

Sources & References

• DOJ Official Complaint (Primary Source): U.S. Department of Justice — Justice Department Seeks to Shut Down Florida Return Preparers
• Full Complaint Document (FLSD Docket 04/28/2026): justice.gov/opa/media/1438536/dl

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official DOJ court records and the U.S. District Court for the Southern District of Florida docket on April 30, 2026. Last Updated: April 30, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Information about this ongoing legal case is based on publicly available court records and official government sources. Allegations described in this article have not been proven in court — all claims are attributed to the complaint as filed by the United States. For advice regarding a particular legal situation, consult a qualified attorney.