The agencies that collect tax revenue have access to a tremendous amount of our personal information — starting with our social security number. We assume that these employees are honest. Sometimes yes, and sometimes, these employees steal and commit fraud…
By Egon E. Mosum
For those who receive paychecks, it’s easy to see the taxes taken from one’s earnings — city, state and federal — with each payday.
For those who are self-employed, with each quarterly estimated payment they must contribute money they earned to the various taxing authorities waiting with their hands out.
There is the annual ritual of filling out and filing tax forms, and some receive refunds (without interest), and some must pay additional taxes, (sometimes with interest and penalties).
Federal income tax has been a reality in the United States since 1913. Thirty years later, the government started withholding taxes supposedly due from people’s paychecks.
The agencies that collect tax revenue have access to a tremendous amount of our personal information — starting with our social security number.
These agencies employ thousands of ‘workers,’ who can, when the occasion calls for it, access that personal information.
We assume that these employees are honest. After all, they have to pay taxes too, and collecting from us is just their job.
Sometimes yes, and sometimes, these employees steal and commit fraud.
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In a May 21, 2025 press release, the Internal Revenue Service reported, ‘A former Internal Revenue Service (IRS) employee pleaded guilty today in federal court in Boston to filing false tax returns in order to fraudulently obtain tax refunds and stealing Social Security benefits.’[1]
This former employee of IRS ‘Kathleen Mannion, of Lawrence, pleaded guilty to four counts of aiding and assisting in the preparation and filing of a false tax return and one count of theft of government money.’[2]
A June 12, 2024 press release from the Internal Revenue Service reported ‘A former IRS employee has been indicted by a federal grand jury for preparing fraudulent tax returns that illegally claimed more than $200,000 in refunds for her clients.’
This seems to be an annual tradition with former employees of IRS. This particular person was accused of ‘39 counts of aiding and assisting in the preparation and filing of false and fraudulent income tax returns.’[3]
The two aforementioned ladies had some things in common. They are both crooks, and they both worked as ‘contact representatives’ during their employment at Internal Revenue.
These were the people that gave advice to the public relating to taxes and audit matters. These were people who also could have access to that public’s personal information.
When they left Internal Revenue, these were the people who taught people how to defraud the government with respect to tax declaration and payments, and of course took a piece of the action for their efforts.
On October 4, 2022, the United States Department of Justice issued a press release reporting, ‘Five current or former IRS employees have been charged with schemes to defraud the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program, federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.’
According to the press release, ‘the defendants allegedly obtained funds under the PPP and EIDL Program by submitting false and fraudulent loan applications that collectively sought over $1 million. They then used the loan funds for purposes not authorized by the PPP or EIDL Program, but instead for cars, luxury goods, and personal travel, including trips to Las Vegas.’[4]
But these alumni of the Internal Revenue Service don’t just commit fraud and steal money. One stole a vehicle.
‘On January 11, 2023, in the Central District of California, Graham Hefner was arrested on one count of theft of Internal Revenue Service (IRS) property.’
It appears from the allegations that the day before the arrest, Graham Hefner (no relation to Hugh), a thirteen-year IRS employee made off with a government owned vehicle without permission.
According to the press release, in a ‘Mirandized interview, Hefner admitted to taking the vehicle keys, GSA fuel card, and the GOV for his personal use.’[5]
Back in 2013 ‘Federal and Tennessee state prosecutors […] charged 24 current and former Internal Revenue Service employees with “fraudulently obtaining more than $250,000 in government benefits.”’
Among government benefits (allegedly) glommed by these wunderkind, were ‘unemployment insurance, money from the Supplemental Nutrition Assistance Program and Housing Choice vouchers.’[6]
So, we’ve had former Internal Revenue Service employees helping others commit tax fraud, stealing vehicles, stealing COVID funds (or at least misusing them criminally), and getting a slew of government benefits designed to help the poor, not the piggish.
But, at least the idiots in the IRS aren’t dumb enough to commit identity theft are they?
Yes, Virginia, they are, although this particular incident didn’t take place in Virginia, it happened when ‘on May 11, 2018, in the Western District of Arkansas, former Internal Revenue Service (IRS) employee Ryan Payne was sentenced and remanded to custody for aggravated identity theft and false representation of a Social Security Number.’[7]
WHY YOU SHOULD CARE
Think about this: on your tax returns you must render an accurate accounting of your income and deductible expenses, among other information.
If you don’t, you can be liable for interest, penalties, and if you were really naughty on your returns, you could spend five years in a ‘gated community’ with excellent security but not very nice amenities.
Then ask yourself this question: did you ever get a full and accurate accounting from the various governments that forcibly take a significant portion of your earnings for them to spend on…who knows what and how much?
If you have had the rather dubious pleasure of dealing with employees of the Internal Revenue Service, you know what an intelligent and caring group of people they most definitely are not.
But not only are these bureaucrats frustrating, curt, oftentimes ignorant of their own laws and regulations, they are too many times out and out thieves and crooks.
We deserve better. We certainly pay enough for better. But we are not getting it.
While the number of employees at Internal Revenue might have recently been reduced, we have absolutely no indication that the ethics and moral standards of those remaining have been increased.
That agency which besides taking our money, harvests so much personal information about us, must be held to a higher standard.
Given the history of government bureaucracies, they won’t be.
Sources:
[1] Former IRS employee pleads guilty to tax fraud and Social Security fraud 5/21/25 IRS PRESS RELEASE https://www.irs.gov/compliance/criminal-investigation/former-irs-employee-pleads-guilty-to-tax-fraud-and-social-security-fraud
[2] IBID.
[3] Former IRS employee indicted for fraudulent tax returns 6/12/24 IRS PRESS RELEASE https://www.irs.gov/compliance/criminal-investigation/former-irs-employee-indicted-for-fraudulent-tax-returns
[4] Five Current or Former IRS Employees Charged with Defrauding Federal COVID-19 Relief Programs US DOJ PRESS RELEASE https://www.justice.gov/archives/opa/pr/five-current-or-former-irs-employees-charged-defrauding-federal-covid-19-relief-programs
[5] Internal Revenue Service Employee Arrested for Stealing Government Owned Vehicle 3/28/23 US INSPECTOR GENERAL PRESS RELEASE Internal Revenue Service Employee Arrested for Stealing Government Owned Vehicle
[6] 24 Current and Former IRS Employees Charged With Stealing Government Benefits 4/18/13 Kedar Pavgi, GOVERNMENT EXECUTIVE https://www.govexec.com/management/2013/04/24-current-and-former-irs-employees-charged-stealing-government-benefits/62621/
[7] Former IRS Employee Sentenced for Stealing Taxpayer's Identity 7/26/18 TREASURY INSPECTOR GENERAL PRESS RELEASE https://www.tigta.gov/articles/investigations/former-irs-employee-sentenced-stealing-taxpayers-identity