IRS Employee Sentenced for Conspiracy to Commit Identity Theft and Unauthorized Disclosure of IRS Records
Tuesday, March 5th, 2019 @ 9:55PM
CFEG reports that on November 21, 2016, in a federal district court in the Western District of Tennessee, and IRS employee was sentenced for conspiracy to commit identity theft and unauthorized disclosure of information. He was initially charged with, and pled guilty to, the offense on July 19, 2016. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
According to court documents, this IRS employee was a resident of Memphis, Tennessee, was employed by the IRS as a contact representative at the IRS Service Center in Memphis. He had a personal relationship with his coconspirator. He knowingly and willfully agreed and conspired with his coconspirator and others to commit identity theft and unauthorized disclosure of information. The object of this conspiracy was for his coconspirator to obtain IRS taxpayer information from him and use such information for unjust financial enrichment. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
As part of the conspiracy, this IRS employee used his access to the IRS databases, specifically the Remittance Transaction Research (RTR) system, to obtain taxpayer information without authorization. According to the Internal Revenue Manual, the RTR system provides access to remittance processing data and images, which generally include the front and back of a canceled check or money order from a taxpayer, and a voucher, if submitted with the payment. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
This IRS employee obtained RTR printouts of canceled checks made payable to the U.S. Treasury Department and other personal information submitted by taxpayers to the IRS. He then disclosed such information to his coconspirator, by providing printouts and Social Security Numbers (SSNs) of at least three taxpayers for use in fraudulent activities. The coconspirator used the illegally obtained information to breach taxpayers’ bank accounts, obtain monies, and commit other financial fraud against the taxpayers and the IRS. This IRS employee received a portion of the proceeds from his coconspirator. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
This IRS employee was sentenced to two months in prison, followed by two years of supervised release. His supervised release will include two months of home detention and he will be required to participate in Moral Reconation Therapy. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
When IRS employees engage in a conspiracy to commit identity theft and obtain information to breach taxpayers’ bank accounts, obtain money, and commit other financial fraud against taxpayers, the IRS fails in its mission to apply the tax law with integrity and fairness to all.