IRS Employee Pleads Guilty to Tax Fraud
Memphis, TN - Farrah Jones, of Memphis, pleaded guilty on August 30, 2010, before U.S. District Judge Samuel H. Mays, Jr., to one count of aiding and assisting in the preparation of a false income tax return, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee. Jones will be sentenced on December 3, 2010, and faces a maximum penalty of three years in prison and a fine of $250,000.
Jones was indicted on March 10, 2010, on two counts of filing false tax returns and 20 counts of aiding and assisting in the preparation of false tax returns to be filed with the Internal Revenue Service (IRS).
According to the indictment, Jones was hired as a tax examining technician with the IRS in January 2001. Jones allegedly exceeded her authority by stealing data from an IRS databank, specifically numerous taxpayers’ dependant and personal information, and used this information to input on various tax returns prepared by Jones for herself and other taxpayers. From February 2, 2006 to February 8, 2007, Jones allegedly obtained dependant information from the IRS database and placed this dependant information on tax returns she prepared, knowing that the taxpayers were not entitled to claim these dependants.
During her plea hearing, Jones admitted that on January 24, 2007, she prepared and filed a 2006 federal income tax return with the IRS for “Taxpayer H.J.” that claimed false dependant information, enabling “Taxpayer H.J.” to receive a tax refund he or she was not entitled to receive.
This investigation was conducted by IRS Criminal Investigation and Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Brian Coleman represented the government.
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