SignalHub-Massachusetts IRS agent charged with filing false tax returns for 3 years

A longtime agent for the U.S. Internal Revenue Service has been indicted for filing false tax returns for several years,SignalHub the U.S. Attorney's Office for the District of Massachusetts said Wednesday.

Ndeye Amy Thioub, 67, of Swampscott, was indicted on three counts of filing false tax returns and three counts of filing false tax returns as an employee of the United States by a federal grand jury in Boston on Tuesday, according to the U.S. Attorney's Office. Thioub was arrested on March 20 and charged with a criminal complaint, which accused her of lying on her tax returns for 2017, 2018, and 2019.

Thioub had served as an Internal Revenue agent since 2006 and worked out of the Boston IRS office, according to the criminal complaint. She was assigned to the IRS' Large Business and International Division, where she conducted independent field examinations and investigations of "complex income tax returns" filed by large entities, the complaint adds.

"Thioub has extensive and specialized knowledge and training in accounting techniques, practices, and investigative audit techniques," the U.S. Treasury Inspector General for Tax Administration said in a statement earlier this month. "She is also responsible for examining and resolving various tax issues of individuals and business organizations that may include extensive national and/or international subsidiaries."

In addition to her IRS position, Thioub worked as a visiting instructor at Salem State University in Massachusetts between roughly 2017 and 2021, the complaint says. She taught college-level classes that included instruction on verification of records; valuation and analysis of accounts; the importance of financial accounting and financial statements; professional standards; and ethics, professional responsibilities, and legal liabilities issues facing auditors.

Thioub faces up to three years in prison, followed by one year of supervised release, and a $100,000 fine for filing a false tax return, according to the U.S. Attorney's Office. She also faces up to five years in prison, followed by one year of supervised release, and a $10,000 fine for filing a false tax return as a federal employee.

According to the U.S. Sentencing Commission, more than 61,000 cases were reported to the commission in the fiscal year 2022. Of those cases, 401 involved tax fraud and the median loss for these offenses was over $300,000.

Complaint: Veteran IRS agent claimed thousands of dollars in false expenses

During the tax years of 2017 to 2019, Thioub filed false personal tax returns and claimed thousands of dollars in fraudulent business expenses, according to the U.S. Treasury Inspector General for Tax Administration.

The complaint alleges that Thioub also filed a false Schedule C, which is used to report income and expenses a taxpayer operated or a profession the taxpayer practiced as a sole proprietor. Thioub allegedly claimed a business loss from an "import/export" business Thioub said she operated, the complaint says.

"As a result, the claimed net loss was carried over to her personal IRS Form 1040s and used to reduce Thioub’s adjusted gross income and ultimate tax liability," the U.S. Attorney's Office said.

Thioub had reported that the alleged businesses resulted in net losses of $42,805 in 2017, $20,324 in 2018, and $27,063 in 2019, according to the complaint.

More:The IRS is sending 125,000 compliance letters in campaign against wealthy tax cheats

Latest criminal case involving IRS employee

Wednesday's announcement is the latest case involving an IRS employee in recent years.

In May 2023, six people — including a former IRS employee — were charged in connection to an alleged multimillion-dollar COVID-fraud scheme, according to the IRS. Frank Mosley was identified as the former IRS agent and was a tax enforcement officer for Oakland, California, at the time.

According to the charging documents, Mosley and the five other suspects conspired to submit fraudulent loan applications through the federal government's Payroll Protection Program. Mosley was also accused of using the funds from the loans for personal investments and expenses.

Another former IRS employee was sentenced to 13 months in prison, followed by three years of supervised release, and ordered to pay $74,662 restitution in 2022, the IRS said. The former employee had filed false tax returned and gave fabricated records "in an attempt to obstruct an audit of those returns."

In October 2020, an IRS supervisory revenue agent was arrested and charged with one count of conspiracy to distribute five kilograms or more of cocaine, according to the U.S. Department of Justice. An investigation at the time revealed that the agent would resell cocaine that he received from a courier.