Friday, March 12, 2010

IRS Employees Charged with Stealing Money Orders

Granted, this doesn't happen very often, but it's another reason why I encourage taxpayers pay their tax obligations electronically. A few years ago, a security truck transporting thousands of IRS quarterly 1040ES payments overturned while crossing a San Francisco Bay Area bridge, losing many of the checks.

Direct ACH debits avoid the checks getting lost in the mail or getting misdirected at the taxing authorities, including keypunching errors by the government clerks. When taxpayers put their social security numbers on the checks, it also opens up the possibility of identity theft when the checks fall in the wrong hands. With banks truncating paper checks and provide only electronic images, the images are accessible by any bank employees. An ACH debit also avoids having to prove to the taxing authorities that the payment was made on time.
Covington, Ky. (March 11, 2010)
By WebCPA Staff

Two IRS Service Center employees in Covington, Ky., were charged in a 29-count indictment with stealing thousands of dollars in money orders.

Joseph Ligon, 37, and Lashon Weaver, 31, both of Cincinnati, were indicted for theft of government money.

The indictment alleges that from July through November 2009, Weaver stole $7,784.62 in money orders. The indictment also accuses Ligon of stealing approximately $3,737.93 in money orders from June to October 2009.

In addition, the indictment also alleges that Ligon and Weaver, aided and abetted by each other, stole a $500 money order.

Ligon and Weaver were indicted by a grand jury in Covington on Thursday. If convicted, they each face up to 10 years in prison.