Former IRS Employee Indicted for Fraud Scheme
KANSAS CITY, Mo. – A former IRS employee has been indicted by a federal grand jury for stealing refunds from taxpayers.
Tamara R. Miller, 39, of Kansas City, Missouri, was charged in a five-count indictment returned under seal by a federal grand jury in Kansas City on Oct. 2, 2019. That indictment was unsealed and made public today upon Miller’s arrest and initial court appearance.
Miller was employed by the IRS as a data transcriber at the Kansas City Service Center. As part of her duties, Miller handled individual income tax returns received by mail at the Kansas City Service Center.
The federal indictment alleges that Miller selected tax returns on which the “Refund” section did not show a routing number or account number for a direct deposit to a financial institution (indicating the taxpayer elected to have the refund paid by a U.S. Treasury check). Miller allegedly used taxpayers’ means of identification, including names and Social Security numbers, shown on their tax returns to apply for accounts at online banks that issued prepaid debit cards. If Miller succeeded in opening an online account with a taxpayer’s means of identification, she entered the routing number and account number for the fraudulently created account in the “Refund” section of the taxpayer’s Form 1040. Miller had access to the fraudulently created account; the taxpayer did not know the account existed.
As an alternative means of fraudulently altering taxpayers’ returns, Miller entered the routing and account numbers for an existing online account to which she had access in the “Refund” section of the Forms 1040, thereby falsely representing that the taxpayer elected to have the refund amount deposited directly to that account.
Miller allegedly caused the fraudulently altered Forms 1040 to be submitted and processed for payment of the refund amounts requested by the taxpayers. The refund amounts were subsequently deposited directly to accounts controlled by Miller and accessible to Miller.
The indictment cites two victims of Miller’s fraud scheme, with a total loss amount of $5,214. Miller is charged with two counts of wire fraud, one count of aggravated identity theft, and two counts of theft of public money.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Tom Larson. It was investigated by the U.S. Treasury Inspector General for Tax Administration.