IRS Employee Charged with Tax Fraud and Identity Theft

[kcjenkins]

Philadelphia (February 12, 2014)
By Michael Cohn

An Internal Revenue Service employee who also prepared taxes on the side has been charged with tax fraud and aggravated identity theft.

Sherelle Pratt, 49, of Philadelphia, was charged by an indictment, unsealed Tuesday, with filing false tax returns, aiding and assisting other individuals in preparing and filing false tax returns, theft of government property, and aggravated identity theft, according to the office of U.S. Attorney Zane David Memeger. Pratt was arrested Tuesday.

Pratt is an IRS contact center representative who allegedly prepared federal income tax returns for a number of individuals from tax years 2006 through 2008. She caused the refunds, and stimulus payments that the filers were supposed to receive, to be deposited into her personal bank account, according to prosecutors. In some cases, she gave the filers a portion of the refunds and stimulus payments. In other instances, according to the indictment, Pratt kept the refund and stimulus payments.

She allegedly stole nearly $29,000 in tax refunds intended for nine tax clients, according to the Philadelphia Inquirer . She also allegedly filed for a $3,524 tax refund in another client's name without telling him.

If convicted, Pratt faces up to 33 years in prison, including a two-year minimum mandatory sentence, a fine of up to $2.25 million, a special assessment of $900, and two years of supervised release.

The case was investigated by the Treasury Inspector General for Tax Administration, Philadelphia Field Office and the IRS’s Criminal Investigation unit and is being prosecuted by Assistant U.S. Attorney Floyd J. Miller. They began investigating her in 2009 when the father of one of her clients became suspicious about a missing tax refund and stimulus check.

An indictment, information or criminal complaint is an accusation, Memeger’s office noted, and a defendant is presumed innocent unless and until proven guilty.

[kcjenkins]

What gets me is they started investigating her in 2009, and it took them FIVE years to charge her?

[BulldogTom]

Its good to work for the IRS. They don't do anything very fast. Bet they gave her every opportunity to clear herself. The Service wants to show that they are clean and tax preparers are dirty. You don't think they want this kind of story out there, that their own employees are dirty. If this had been an H&R Block or Liberty or one of the big advertisers of "pennies on the dollar settlements", this would have been all over the news.

Tom

Hollister, CA

[Terry D EA]

<<<If convicted, Pratt faces up to 33 years in prison, including a two-year minimum mandatory sentence, a fine of up to $2.25 million, a special assessment of $900, and two years of supervised release.>>>

Is there really any chance that she will be found innocent? I wonder how they will ever collect $2.25 million especiallty after serving 33 years wihout a job. And I agree with Tom about the HRB and Liberty thing. I wish someone would get on them for all the false adverstising they do. $50.00 instant check for filing today but the tax prep fee is $400.00. These folks who fall for these things don't even realize the $50.00 came from their refund.

[kcjenkins]

She will probably get the 2 yr minimum and the fine, which will never be collected.