Former IRS Employee Indicted for Filing Fraudulent Tax Returns and Aggravated Identity Theft
Tuesday, March 5th, 2019 @ 9:53PM
CFEG reports that on January 13, 2017, in a federal district court in the Western District of Missouri, a former IRS employee was indicted for filing false tax returns and aggravated identity theft. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
According to court documents, at all times relevant to the 15-count indictment, this IRS employee was a contact representative at the IRS Service Center in Kansas City, Missouri. She was employed by the IRS from 2006 until June 2015, when she resigned. From at least February 2012 and continuing to about February 2014, she intentionally devised a scheme for the purpose of obtaining funds for herself and others by preparing false tax returns using false or stolen information to pay her own personal expenses and expenses for family members. In doing so, she knowingly and willfully aided and assisted in the preparation and presentation of Federal income tax returns, Form 1040, containing false information, and used the identification of another without lawful authority. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
She prepared false tax returns for Tax Years 2011, 2012, and 2013 for approximately 13 of her friends and family members, as well as for herself. As part of her scheme, this IRS employee included false entries to lower the individual tax liability for her friends, family members, and herself to increase refunds. These false entries included false wages and occupations, fraudulent Federal income tax withholdings, false Schedule C entries, fraudulent dependents, and false education expenses and credits.
This IRS employee prepared the false returns from her residence, her boyfriend’s residence, and from the IRS Service Center, Kansas City, MO. She charged approximately $150 each for the preparation of some tax returns, but did not sign the returns as a “paid preparer” and did not provide copies of the completed returns to friends and family members. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
This IRS employee was linked to 27 fraudulent returns with a total tax loss to the Government of approximately $118,012.19. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
This IRS employee faced a maximum of three years’ imprisonment as to each count of filing false tax returns, plus an additional mandatory two-year sentence for aggravated identity theft. https://www.treasury.gov/tigta/oi_highlights_2017.shtml
When IRS employees falsify official IRS tax forms, file false tax returns and commit aggravated identity theft by using the identity of another without lawful authority, the IRS fails in its mission to apply the tax law with integrity and fairness to all.