Kathleen Mannion, 58, of Lawrence, Massachusetts, pleaded guilty to four counts of aiding and assisting in the preparation and filing of a false tax return and one count of theft of government money in a federal court in Boston.
Mannion worked as an IRS contact representative in Andover, Mass. from 1998 to 2009. Between July 2020 and April 2023, she prepared and filed income tax returns for other individuals with the IRS, but did not list herself as the tax return preparer.
Mannion listed ineligible dependents on the tax returns, resulting in higher refund amounts for which the taxpayers did not qualify—all without their knowledge. She also filed forms with the IRS directing that a portion of the fraudulently obtained tax refunds be deposited in her personal bank accounts, which she then used for her personal benefit.
Separately, between April and October 2020, Mannion applied for Social Security retirement, spouse and widow benefits with the Social Security Administration (SSA) via telephone for other individuals. Unbeknownst to these beneficiaries, Mannion directed SSA to deposit the Social Security benefits in her personal bank accounts, which she also used for her personal benefit.
The charge of aiding and assisting the preparation and filing of a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000.
The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000.
U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for September 3, 2025.
Mannion was charged in March 2025.
The announcement was made by United States Attorney Leah B. Foley, Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office, and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division.
Assistant U.S. Attorney John T. Mulcahy of the Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit are prosecuting the case.
The case highlights the importance of maintaining the integrity of the tax system and protecting the trust placed in government agencies.
Kathleen Mannion, Defendant/Respondent REAL full name: Kathleen Mannion.
Exact criminal charges: Aiding and assisting in the preparation and filing of a false tax return and theft of government money.
City and state: Boston, Massachusetts.
Exact date: March 2025 (charged), September 3, 2025 (sentencing).
Sentence or outcome: Prison time and fine.
Dollar amounts: Up to $250,000 fine and up to 10 years in prison for theft of government money, up to three years in prison and $250,000 fine for aiding and assisting in the preparation and filing of a false tax return.
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Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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