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December 17, 2019

IRS Employee Pleads Guilty To Wire Fraud and Theft of Government Property

On October 7, 2019, in the Middle District of Tennessee, Internal Revenue Service (IRS) employee Tracey Allison pled guilty to wire fraud and theft of Government property. Allison had previously been charged with the offenses on March 6, 2019, in a scheme to fraudulently obtain paid military leave and other benefits from the IRS.

According to the indictment, Allison had been employed with the IRS in Franklin, Tennessee, since October 2007. From about November 2013 through about October 2018, Allison knowingly devised a scheme to defraud and to obtain money by means of false pretenses, willfully stole property belonging to the United States, and used one or more means of identification of another without authorization.

Specifically, between 2013 and 2018, Allison regularly submitted false Department of the Army Forms 1380 (DA Form 1380) to the IRS payroll unit seeking payment for military duties. Allison, however, was discharged from the U.S. Army Reserve in August 2012 and enlisted in the Tennessee National Guard in July 2018. Consequently, she had no military duties for the dates listed on the forms. In furtherance of Allison’s scheme, she forged the name, title, and Department of Defense identification number of her former station commander on the DA Forms 1380. Yet, her former station commander was a military retiree who ceased supervising Allison’s military duties around July 2013. Allison was not authorized to use his or her personal identifiers.

In the plea agreement, Allison acknowledged that she used the IRS computer network to create, submit, and store the false DA Forms 1380, that she misused her employer’s authorized access on the IRS computer systems by using Government property for fraudulent activities, and that her participation in the scheme was undertaken knowingly, intentionally, and unlawfully. Allison submitted at least 70 forged and false DA Forms 1380, causing the IRS to award paid military leave and other benefits totaling approximately $22,846.

Sentencing in this matter is scheduled for February 14, 2020.

Source:  The facts in this case narrative come from the following publicly available documents: M.D. Tenn. Indict. filed Mar. 6, 2019; M.D. Tenn. Plea Agr. Filed Oct. 7, 2019.