Former IRS employee pleads guilty to false tax returns

Tom Larson, acting U.S. attorney for the Western District of Missouri, announced that a former IRS employee pleaded guilty in federal court to filing false tax returns.

Carla Lachelle Mitchell, 49, of Kansas City, Kan., pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a Jan. 13, 2017, federal indictment.

Mitchell worked as a contact representative at the IRS Service Center in Kansas City, Mo., from 2006 to 2015. By pleading guilty, Mitchell admitted that while employed by the IRS she prepared false federal income tax returns for 2011, 2012 and 2013 for 13 of her friends and family, as well as herself.

When preparing tax returns, Mitchell included several false entries (such as fraudulent wages or dependents) to lower the individual tax liability for her friends, family members and herself or to increase their refunds. Mitchell has been linked to 27 fraudulent returns through her admissions, witness statements and IP addresses. The total tax loss for the 27 false and fraudulent income tax returns is approximately $118,012.

Under federal statutes, Mitchell is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.