LOS ANGELES (CN) - Federal prosecutors say an IRS agent committed tax fraud. Jim Liu, an IRS auditor, also is charged with obstructing an IRS investigation of his tax return.
Prosecutors say Liu claimed a tax loss on a real estate sale on which he actually made money. Liu allegedly gave the IRS doctored documents to show that he bought a property for $46,000 more than the real sale price, according to the indictment.
"The taxpaying public expects IRS employees to file and pay their taxes like anyone else," said Julie Parodi, a tax administration special agent.
If convicted, Liu could face 13 years in prison.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.