April 01, 2009

I.R.S. REVENUE AGENT AGREES TO PLEAD GUILTY TO TAX FRAUD FOR FAILING TO REPORT INCOME ON HIS PERSONAL TAX RETURN

A revenue agent with the Internal Revenue Service has agreed to plead guilty to a federal tax fraud charge for filing a personal income tax return that claimed he suffered a loss in a real estate transaction, when in fact he realized a substantial profit.

In a plea agreement filed this afternoon in United States District Court in Santa Ana, Jim H. Liu, 43, of Diamond Bar, agreed to plead guilty to subscribing to a false tax return, a charge that carries a penalty of up to three years in federal prison. Liu is employed by the IRS as a revenue agent and conducts audits of taxpayers.

In the plea agreement, Liu admits that he filed a false tax return for the 2002 tax year that improperly claimed a loss on his sale of a property on Chanslor Street in Pomona. According to the plea agreement, Liu sold the Chanslor property for a profit of more than $48,000, but he claimed that he had suffered a loss of more than $4,200. The tax loss to the government, as a result of Liu’s filing of the false tax for 2002 was approximately $14,642.88, according to the plea agreement.

The case against Liu was previously assigned to United States District Judge David O. Carter. A change of plea hearing in the case has not yet been scheduled.

The investigation of Liu was conducted by the Treasury Inspector General for Tax Administration.

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For more information on federal criminal defense law, contact the Law Offices of Joseph Shemaria of Los Angeles, California.