Former IRS Employee Pleads Guilty to Conspiracy to Defraud the IRS
Sunday, March 24th, 2019 @ 3:52PM
CFEG reports that on November 8, 2018, in a federal district court in the Middle District of Florida, former Internal Revenue Service (IRS) employee pled guilty to conspiracy to defraud the United States and making and subscribing to a false tax return. She was initially charged with the offenses on October 24, 2018. https://www.treasury.gov/tigta/oi_highlights_2018.shtml#152
According to court documents, from about January 2011 through about July 2015, this IRS employee knowingly and willingly conspired with others to defraud the United States by impeding and obstructing the lawful function of the IRS with deceit and dishonest means by preparing and filing fraudulent individual income tax returns. https://www.treasury.gov/tigta/oi_highlights_2018.shtml#152
She was an IRS revenue officer at the time of the conspiracy and also operated a family-owned tax preparation service in Bradenton, Florida. She and her co-conspirators prepared and electronically filed a number of individual tax returns with fraudulently inflated deductions, such as medical and charitable contributions, which resulted in refund amounts substantially greater than their clients were entitled to receive. After the fraudulent returns were filed, the conspirators then destroyed or otherwise disposed of their work papers and other information obtained from their clients. The total loss to the IRS stemming from the conspiracy was approximately $249,000. https://www.treasury.gov/tigta/oi_highlights_2018.shtml#152
Additionally, under penalty of perjury, this IRS employee signed and filed with the IRS materially false returns, failing to report more than $165,600 in income she received from the tax preparation business over the course of five calendar years, which resulted in a tax loss of approximately $49,600 to the IRS. https://www.treasury.gov/tigta/oi_highlights_2018.shtml#152
She could face a maximum statutory sentence of five years’ imprisonment. https://www.treasury.gov/tigta/oi_highlights_2018.shtml#152
When IRS employees engage in a conspiracy to defraud the Government and preparing and filing false tax returns the IRS fails in its mission to apply the tax law with integrity and fairness to all.