Thursday, February 28th, 2019 @ 3:32AM

The Inspector General for Tax Administration reported that on July 19, 2016, in a federal district court in the Western District of Tennessee, an Internal Revenue Service (IRS) employee pled guilty to conspiracy to commit identity theft and unauthorized disclosure of information. A criminal information was filed on the same date detailing the charge. https://www.treasury.gov/tigta/oi_highlights_2016.shtml

According to the 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. The employee 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 the coconspirator to obtain IRS taxpayer information from the IRS employee and use this information for unjust financial enrichment. https://www.treasury.gov/tigta/oi_highlights_2016.shtml

As part of the conspiracy, the 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 cancelled check or money order from a taxpayer, and a voucher, if submitted with the payment. https://www.treasury.gov/tigta/oi_highlights_2016.shtml

The IRS employee obtained RTR printouts of cancelled 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, providing the coconspirator with the 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. The IRS employee received a portion of the proceeds from the coconspirator. https://www.treasury.gov/tigta/oi_highlights_2016.shtml

This IRS employee faced a maximum of five years’ imprisonment and a fine up to $250,000. His sentencing was scheduled for November 21, 2016. https://www.treasury.gov/tigta/oi_highlights_2016.shtml

When IRS employees steal Government funds and engage in identity theft the IRS fails in its mission to apply the tax law with integrity and fairness to all.

Posted by cfegov
Categories: 2016 CRIMINAL CONVICTIONS OF IRS EMPLOYEES, Criminal Convictions of IRS Employees for 2018, IRS Employees Engage In Tax Refund Identity Fraud