IRS employees are expected to uphold the tax code they enforce, but a recent federal court ruling shows the consequences of failing to do so. The U.S. Court of Appeals for the Federal Circuit has upheld the dismissal of a Supervisory Revenue Officer who failed to pay her taxes and abused her position. The case, Harris-Campbell, U.S. Fed. Ct. Appls. Dk. No. 24-1470, confirms that federal supervisors are held to a stricter standard of compliance than private citizens.
The taxpayer worked her way up from an Accounts Manager to a Supervisory Revenue Officer at the agency. However, professional duties did not stop her from engaging in personal tax fraud. By 2015, her goddaughter threatened to report the taxpayer for accepting compensation or gifts in exchange for preparing tax returns. The goddaughter claimed the practice started as a “family thing” but was eventually extended to other acquaintances.
Treasury Inspector General for Tax Administration (TIGTA) investigators found the taxpayer improperly claimed dependency exemptions for her goddaughter and the goddaughter’s son in multiple tax years. She listed the goddaughter as a dependent from 2008 to 2014 despite not paying enough of the child’s expenses to qualify. She also listed the goddaughter as her child in 2008 and 2009, and as her stepchild in 2011. Additionally, the taxpayer admitted she knew these actions were “technically illegal.”
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The investigation uncovered further misconduct, including placing the goddaughter and her grandson on the taxpayer’s Federal Employee Program health insurance plan without proper authorization. TIGTA verified the false claims during an IRS audit, resulting in a tax liability that included interest and penalties. The taxpayer was fired from her job after the agency sustained the allegations.
Despite the evidence, the taxpayer appealed her termination to the Merit Systems Protection Board. An administrative judge initially ruled in her favor, ordering her reinstatement. The agency challenged this decision, and the Board ultimately reversed the initial ruling, sustaining the taxpayer’s removal from service. The agency’s position was that federal employees, particularly those in supervisory roles, must enforce tax law while strictly adhering to it themselves.
The taxpayer continued to fight the decision through the federal court system. The U.S. Court of Appeals for the Federal Circuit has now entered a final order affirming the Board’s decision. The court upheld the dismissal, leaving the taxpayer without her position or back pay.
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Being stripped of a career built on enforcement authority over others requires a significant psychological adjustment. The loss of a supervisory title often carries a stigma that is difficult to overcome in a professional environment, especially within a government agency where trust is the foundation of the job.
For the average taxpayer, this case serves as a stark reminder that the IRS has the resources and authority to investigate even its own agents for non-compliance.
The Treasury Inspector General for Tax Administration (TIGTA) partners with the Department of Justice to combat fraud.
