IRS Employee Pleads Guilty to Tax Fraud

By:
Chris Gaetano
Published Date:
Sep 22, 2016
Gavel

An IRS employee pleaded guilty to using taxpayer identities to file false tax returns to get inflated refunds for himself and his clients, according to Accounting Today. The IRS employee, who lived in Staten Island and worked at an IRS office in Edison, NJ, filed 12 false tax returns over the course of three years, complete with false dependents, false deductions and other false information in order to inflate the refunds they would produce. He also pleaded guilty to adding false dependents on legitimate tax returns without his clients' knowledge or consent in order to increase the refund and then pocket the difference. Finally, he also pleaded guilty for perjury as part of an effort to get a First-Time Homebuyer Credit for himself, lying under oath about his residence. 

Specifically, he pleaded guilty to charges of 12 counts of filing or preparing false tax returns, 12 counts of wire fraud, one count of mail fraud, and committing perjury in U.S. Tax Court in 2012. He could face up to 20 years for each wire fraud and mail fraud count, three years for each tax fraud count, and up to five years for perjury. He will also pay the IRS over $70,000, plus interest, penalties and fines. 

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