IRS

More IRS Employees Busted for Fraud and Theft

A little insight into the people handling your your 1040 form

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Joshua Doubek

Have you ever wondered how Internal Revenue Service employees make ends meet on those skimpy federal salaries? What with the competing demands of mortgages, feeding the kids, and those damned cable television bills, life can be expensive, so how to keep your head above water…?

I know—unemployment fraud!

According to the Treasury Inspector General for Tax Administration:

Ten former Internal Revenue Service (IRS) employees were sentenced in the Western District of Missouri between January 26, 2015, and January 28, 2015, for the theft of Government property stemming from unemployment benefits fraud…

The individuals were required to certify weekly, via the Internet or telephone, any work and earnings in order for [Missouri Division of Employment Security] to determine the validity of continued benefits. All 10 of the defendants were employed at the IRS while claiming unemployment benefits through MODES, resulting in the fraudulent payment of benefits in amounts ranging from $6,127 to $21,348, with an aggregate total of $112,609.

All 10 entered guilty pleas and are now on probation for five to 10 years over what amounts to a pretty pissant sum. Really, if you're going to steal, steal big.

There's no indication from the Inspector General's telling that the IRS employees were anything but entirely honest and aboveboard in their handling of the taxpayers' business. So rest assured.

But maybe the same can't be said of Yolanda Castro, who put her hard-earned tax examination skills to creative use.

Internal Revenue Service (IRS) employee Yolanda Castro was arrested on February 27, 2015, [1] for making false Federal tax returns. Castro was indicted in the Eastern District of California the previous day, February 26, 2015, on charges of making a fraudulent tax return by an employee of the United States, aiding and assisting fraud and false statements, and false statements to a Government agency. [2]

According to court documents, Castro has been employed by the IRS in Fresno, California, for approximately 20 years as a tax examiner and, most recently, as a contact representative responsible for responding to taxpayers' inquiries and making adjustments to taxpayers' accounts. [3]

Between 2007 and 2013, Castro prepared and filed, or caused to be filed, numerous fraudulent Federal income tax returns for herself, her family members, and others, on which she knowingly placed false information for purported child care services, education expenses, business expenses, and casualty losses. As a result of her fraudulent conduct, Castro defrauded the United States of approximately $37,387.

Castro also prepared bogus returns for other people and "illicitly accessed IRS databases." But I'm having a hard time getting past that 37 grand over six years. With such poor numbers, she'll never make it to the Senate.

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  1. I watched Going Clear last night, the documentary on Scientology. The IRS is so wretched that I actually found myself rooting for the Scientologists halfway through the documentary during the part where Scientology squared off with the IRS over tax-exempt status.

    And David Miscavige is some sort of diabolical genius, and therefore, kinda my hero.

    1. Not really. The whole thing kind of fell into his lap, and now he’s fucking it up by being petty. Even his own immediate family is leaving, and his wife hasn’t been seen in public for several years.

      It’s on its way out. Mark my words.

      If you’re ever on your way out to the desert, take the 60. If you get off on Gilman Springs Road, you can drive right by their compound. It’s really creepy. Like, people hiding in the bushes creepy. They have spikes on the fence, and they’re pointed INWARD.

      1. I dunno, the IRS has hurt me a lot more than Scientology.

        1. Sometimes the enemy of your enemy is still your enemy. Scientology is still quite evil despite anything the IRS does.

          1. Oh, sure. But my hierarchy of enemies has to start with the ones actively trying to destroy me.

          2. +1 Dick Tracey

      2. Yeah, they’re hemmoraging congregants but the financial clout of the organization is impressive. I expect that eventually it’ll simply become a hedge fund with the tax-exempt status of muni bonds.

        1. Are they really in danger? They seem bigger than Apple to me still.

          1. Financially, yes, they are impressively large. I believe the assets are something around $4 billion. A good share of that is illiquid CRE assets though. But the actual membership of the church is dwindling as more info comes out about it. They continue their recruitment efforts though. Every few days I spot them handing out their “free stress test” coupons here in downtown L.A. The “stress test”, known as an audit in the nomenclature of the church, is essentially voluntarily submitting yourself to a Stasi archive.

            A friend of mine is engaged to a Scientologist. I’m not sure if she just read Dianetics and found a placebo effect from the pop psych techniques or is actively involved and paying in. Eventually, as a groomsman, I’ll have to broach the subject with him.

          2. Well, their headquarters are right across the bay from you. That might make them seem bigger than they are.

            1. True. I keep waiting for them to absorb me.

    2. Was there anything in the documentary about the woman they let die in their “care”? Lisa-something.

      1. Not that I recall, but there was plenty about their re-education center on the seventh floor of their Hollywood “celebrity center” compound. I drive past that along the 101 with some frequency. It’s disturbing to know that I’m driving past a slavery, child abuse, and murder center.

        But the piety of the group and the measures they’re willing to take against apostates is impressive. I would love to see an Islamist vs. Scientologist deathmatch.

      2. For some reason, they didn’t cover Lisa McPherson.

        Most of the doc was about stuff that took place at the Celebrity Center and the Desert Compound. I think they own enough of Clearwater that it would be a bad idea to start throwing rocks there.

    1. Who’s going to pay for the policemen, trees and sunshine? You?

      1. They got enough from me already to pay for their fairy tale romances, let alone things I get from the state and nature.

  2. “resulting in the fraudulent payment of benefits in amounts ranging from $6,127 to $21,348”

    Like 2Chili said, if you’re gonna steal from Uncle Sugar, go big. It’s the same penalty.

    1. Seems there’s an inverse correlation between how much you steal and the severity of the punishment.

      1. Very well. Make “the same penalty” life without parole.

  3. I’m sure the smart ones who are stealing big aren’t getting caught. Because if these idiots who finally got caught could fool the IRS for 20 years for chump change, the really smart ones must be running circles around investigators.

    Maybe I should become an IRS agent…

    1. 1. Steal big

      2. Give half to various election campaigns

      3. You are now above the law

  4. My best friend’s mother-in-law makes $85 /hour on the internet . She has been out of work for 5 months but last month her pay was $16453 just working on the internet for a few hours.
    Visit this website ????? http://www.jobsfish.com

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