Sunday, March 3rd, 2019 @ 5:34PM

CFEG reports that on March 30, 2017, in a federal district court in the Eastern District of California, a former IRS employee was indicted for creating opportunities for persons to defraud the United States and for making and subscribing false returns.
https://www.treasury.gov/tigta/oi_highlights_2017.shtml

According to court documents, this IRS employees was employed from 2000 to 2015 by the IRS in Fresno, California, in various positions, including as a contact representative. As a contact representative, she was responsible for responding to taxpayers’ inquiries regarding tax filings and making adjustments to taxpayers’ accounts.

https://www.treasury.gov/tigta/oi_highlights_2017.shtml

At all times relevant to the charges, this IRS employee created opportunities for individuals to defraud the United States by offering to increase their tax refunds or offset their tax liabilities through the preparation and filing of Federal income tax returns that included false deductions. She also filed fraudulent tax returns for herself, by falsely claiming deductions to which she was not entitled.
https://www.treasury.gov/tigta/oi_highlights_2017.shtml

Around 2009, the IRS had informed the employee that expenses reported on her tax return related to her photography work were not allowed as a deductible expense, because that work was considered to be a hobby for tax reporting purposes, not an activity engaged in for profit. Despite this, she filed three subsequent tax returns between 2011 and 2013 claiming unauthorized and excessive business expenses related to her photography activities and received tax deductions and credits to which she was not authorized.
https://www.treasury.gov/tigta/oi_highlights_2017.shtml

As part of her scheme to defraud, this IRS employee willfully filed, under penalties of perjury, three Federal tax returns claiming Schedule C expenses for her photography activities in the approximate amounts of $39,507, $11,692, and $28,933 for Tax Years 2010, 2011, and 2012, respectively, knowing at the time that she had not incurred such expenses and was not authorized to claim such expenses.
https://www.treasury.gov/tigta/oi_highlights_2017.shtml

Additionally, she knowingly made and caused to be filed fraudulent tax returns for five other taxpayers, claiming false expenses such as child care expenses, tax preparation fees, medical expenses, and other Schedule A deductions. This IRS employee knew these taxpayers did not incur the claimed expenses and were not entitled to deduct them.
https://www.treasury.gov/tigta/oi_highlights_2017.shtml

She was arrested on April 3, 2017, and released on a personal recognizance bond. She faced a maximum of five years’ imprisonment. https://www.treasury.gov/tigta/oi_highlights_2017.shtml

When IRS employees file false and fraudulent tax returns, the IRS fails in its mission to apply the tax law with integrity and fairness to all.

Posted by cfegov
Categories: Theft of Government Property By IRS Employees