Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A former employee of the Internal Revenue Service (IRS) has been sentenced in Boston federal court for filing false tax returns and stealing Social Security benefits. Kathleen Mannion, 59, of Lawrence, received an 18-month prison sentence followed by three years of supervised release from U.S. Senior District Court Judge Nathaniel M. Gorton on March 4, 2026.
Mannion pleaded guilty in May 2025 to four counts of aiding and assisting in the preparation and filing of a false tax return and one count of theft of government money. She was initially charged in March 2025.
Mannion worked as an IRS contact representative in Andover, Massachusetts from 1998 to 2009. According to prosecutors, between July 2020 and April 2023, she prepared and filed income tax returns for other individuals without listing herself as the preparer. Instead, she made it appear that the taxpayers had prepared their own returns. Mannion included dependents who were not eligible on these returns, resulting in higher refund amounts that the taxpayers would not have otherwise qualified for—without their knowledge.
She also submitted forms directing that portions of these fraudulent refunds be deposited into her personal bank accounts, which she used for her own benefit.
In a separate scheme between April and October 2020, Mannion applied for Social Security retirement, spouse, and widow benefits with the Social Security Administration (SSA) over the phone on behalf of other individuals. Without informing these beneficiaries, she directed SSA to deposit their benefits into her personal accounts.
The announcement was made by United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation at the Boston Field Office; and Amy Connelly, Special Agent in Charge at the Social Security Administration’s Office of Inspector General in Boston. The case was prosecuted by Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit.
"The investigation revealed a pattern where fraudulent refunds were obtained using false information about dependents," said authorities involved with the case.
