On March 5, 2018, in the Eastern District of California, former Internal Revenue Service (IRS) employee Pamela Pringle was sentenced for making opportunities for persons to defraud the United States and for making and subscribing false returns.1 Pringle was indicted for the offenses in March 20172 and pleaded guilty in November 2017.3
According to the court documents, Pringle was employed from 2000 to 2015 by the IRS in Fresno, California, in various positions, including as a contact representative. As a contact representative, she was responsible for responding to taxpayers' inquiries regarding tax filings and for making adjustments to taxpayers' accounts.4
At all times relevant to the charges, Pringle was an IRS employee and created opportunities for individuals to defraud the United States by offering to increase their tax refunds or offset their tax liabilities through the preparation and filing of Federal income tax returns that included false deductions. Pringle also filed fraudulent tax returns for herself by falsely claiming deductions to which she was not entitled.5
Around 2009, the IRS informed Pringle that expenses reported on her tax return related to her photography work were not allowed as a deductible expense, because that work was considered to be a hobby for tax reporting purposes, not an activity engaged in for profit. Despite this, Pringle filed three subsequent tax returns between 2011 and 2013 claiming unauthorized and excessive business expenses related to her photography activities, and received tax deductions and credits to which she was not authorized. Pringle knew at the time that she had not incurred such expenses and was not authorized to claim such expenses.6 The false information resulted in a total tax loss of approximately $30,000.7
Additionally, according to the indictment, Pringle knowingly made and caused to be filed fraudulent tax returns for five other taxpayers, claiming false expenses such as child care expenses, tax preparation fees, medical expenses, and other Schedule A deductions. Pringle knew these taxpayers did not incur the claimed expenses and were not entitled to deduct them.8 This false information resulted in a total tax loss of approximately $26,000.9
Pringle was sentenced to five months' imprisonment followed by 36 months of supervised release, five months of which will be home confinement. Pringle was further ordered to pay $56,857 in restitution.10
1 E.D. Cal. Judgment filed Mar. 8, 2018.
2 E.D. Cal. Indict. filed Mar. 30, 2017.
3 E.D. Cal. Crim. Docket as of Mar. 8, 2018.
4 E.D. Cal. Indict. filed Mar. 30, 2017.
5 Id.
6 Id.
7 E.D. Cal. Plea Agr. filed Oct. 26, 2017.
8 E.D. Cal. Indict. filed Mar. 30, 2017.
9 E.D. Cal. Plea Agr. filed Oct. 26, 2017.
10 E.D. Cal. Judgment filed Mar. 8, 2018.