On November 8, 2018, in the Middle District of Florida, former Internal Revenue Service (IRS) employee Dawn Avalle pled guilty to conspiracy to defraud the United States and making and subscribing to a false tax return. Avalle was initially charged with the offenses on October 24, 2018.

According to the court documents, from about January 2011 through about July 2015, Avalle knowingly and willingly conspired with others to defraud the United States by impeding and obstructing the lawful function of the IRS with deceit and dishonest means by preparing and filing fraudulent individual income tax returns.

Avalle was an IRS revenue officer at the time of the conspiracy and also operated a family-owned tax preparation service in Bradenton, Florida. She and her coconspirators prepared and electronically filed a number of individual tax returns with fraudulently inflated deductions, such as medical and charitable contributions, which resulted in refund amounts substantially greater than their clients were entitled to receive. After the fraudulent returns were filed, the conspirators then destroyed or otherwise disposed of their work papers and other information obtained from their clients. The total loss to the IRS stemming from the conspiracy was approximately $249,000.

Additionally, under penalty of perjury, Avalle signed and filed with the IRS materially false returns, failing to report more than $165,600 in income she received from the tax preparation business over the course of five calendar years, which resulted in a tax loss of approximately $49,600 to the IRS.

Avalle could face a maximum statutory sentence of five years' imprisonment. Sentencing has not been set for the matter.

Source:  The facts in this case narrative come from the following publicly available documents: M.D. Fla. Information filed Oct. 24, 2018; M.D. Fla. Plea Agr. filed Oct. 25, 2018; M.D. Fla. Crim. Docket as of Nov. 14, 2018.