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May 19, 2020

IRS Employee Sentenced for Wire Fraud and Theft of Public Money

On March 20, 2020, in the Middle District of Tennessee, Internal Revenue Service (IRS) employee Tracey Allison was sentenced for wire fraud and theft of Government property in connection with a scheme to fraudulently obtain paid military leave and other benefits from the IRS. Allison was indicted for these and other offenses on March 6, 2019.

According to the indictment, Allison has 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, willingly stole property belonging to the United States, and unlawfully used one or more means of identification of another without authority.

Specifically, between 2013 and 2018, Allison regularly submitted fraudulent and forged Department of the Army Forms 1380 (DA 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 did not enlist in the Tennessee National Guard until 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 Forms DA 1380. Yet, her former station commander was a military retiree who ceased supervising Allison around July 2013. Allison was not authorized to use the former station commander's personal identifiers.

In all, Allison submitted approximately 70 false, fraudulent, and forged Forms DA 1380 to the IRS. As a result of the false submissions, Allison collected payments and benefits totaling approximately $22,846.24.

Allison was sentenced to time served, or one day of imprisonment, followed by two years' supervised release. She was also ordered to pay restitution in the amount of $22,846.24 and a special assessment fee of $200.

    Source:  The facts in this case narrative come from the following publicly available documents: M.D. Tenn. Indict., filed Mar. 6, 2019 and M.D. Tenn. Judg., filed Apr. 2, 2020.