On May 27, 2021, in the Eastern District of California, former Internal Revenue Service (IRS) employee Angela Milton pled guilty to aiding and assisting in the preparation and presentation of false and fraudulent tax returns. Milton knowingly added materially false information to Federal income tax returns (FITRs) to increase the refund amount. Milton was indicted on April 12, 2018.

According to the court documents, between 2007 and 2014, as an IRS Tax Examining Technician in Fresno, California, Milton reviewed and amended FITRs. Between 2010 and 2013, Milton prepared and filed numerous false and fraudulent FITRs for others and herself, which she charged taxpayers a preparation fee. She included false or inflated wage income, erroneous tax withholdings, false claims of dependents, and fabricated Schedule C (Form 1040) Profit or Loss From Business with false income and expenses.

For some taxpayers, without their authorization, Milton filed FITRs and split the refund so a portion was delivered to the taxpayer and the remainder to a bank account or prepaid debit or credit card controlled by Milton. In other instances, Milton filed FITRs without the knowledge or consent of the taxpayer, and caused the deposit of the entire refund amount to her bank account or prepaid debit or credit card. Milton defrauded the IRS of more than $170,000.

As part of the plea agreement, Milton agreed to pay $101,475 in full restitution to the IRS, and a special assessment of $100. At sentencing, Milton faces up to three years' imprisonment and one year of supervised release.

Source:  The facts in this case narrative come from the following publicly available documents: E.D. Cal., Plea Agr., May 27, 2021; and E.D. Cal., Indict., April 12, 2018.