A former employee of the Internal Revenue Service (IRS) has admitted guilt in a federal court in Boston for engaging in fraudulent activities related to tax returns and Social Security benefits. Kathleen Mannion, aged 58, from Lawrence, pleaded guilty to four counts of aiding and assisting in the preparation and filing of false tax returns, as well as one count of theft of government money. Her sentencing is scheduled for September 3, 2025, by U.S. District Court Judge Nathaniel M. Gorton.
Mannion's employment history with the IRS spanned from 1998 to 2009, during which she served as a contact representative in Andover, Massachusetts. Between July 2020 and April 2023, she was involved in preparing income tax returns for others without listing herself as the preparer. Instead, she made it appear that taxpayers prepared their own returns. Mannion manipulated these filings by including ineligible dependents to increase refund amounts fraudulently without the knowledge of those taxpayers. She also redirected part of these refunds into her personal bank accounts for personal use.
In addition to tax fraud, Mannion engaged in Social Security fraud between April and October 2020. She applied for retirement, spouse, and widow benefits via telephone on behalf of others but directed the payments into her own accounts.
The charge related to false tax return preparation carries a potential sentence of up to three years imprisonment and fines up to $250,000. The theft charge could lead to up to ten years imprisonment with similar fines. Sentences will be determined by a federal district court judge based on U.S. Sentencing Guidelines.
The announcement was made by United States Attorney Leah B. Foley; Thomas Demeo, Acting Special Agent in Charge at IRS Criminal Investigation's Boston Field Office; and Amy Connelly from the SSA's Office of Investigations in Boston Field Division. Assistant U.S. Attorney John T. Mulcahy and Special Assistant U.S. Attorney James J. Nagelberg are prosecuting this case.
