A St. Louis tax preparer has admitted to stealing more than $52,000 from clients, including their tax refunds and COVID-19 stimulus payments.
Mark A. Murphy, 40, pleaded guilty to one count of theft of government property in federal court on Thursday. Prosecutors said that between 2016 and 2020, Murphy prepared tax returns for clients but did not list himself as the paid return preparer. Instead, he made it appear that his clients had submitted the returns themselves. He also signed taxpayers’ names and opened bank accounts in their names without their knowledge or authorization.
Murphy used these unauthorized accounts to collect his preparation fees directly from client refunds. During the COVID-19 pandemic, he stole Economic Impact Payments (EIPs) issued by the IRS to his clients by withdrawing funds in cash from these secretly set up accounts and using debit cards linked to them for personal purchases. From April 2020 to March 2021, Murphy kept some clients’ entire tax refunds and took a total of at least $52,080 in EIPs and refunds.
Murphy is scheduled for sentencing on June 9. The theft charge carries a maximum penalty of ten years in prison; he will also be required to repay the stolen money.
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA) and IRS – Criminal Investigation. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
