BOSTON — A former Internal Revenue Service employee has been sentenced to federal prison for filing false tax returns to fraudulently obtain tax refunds and stealing Social Security benefits, the U.S. Attorney said Friday.
Kathleen Mannion, 59, of Lawrence, was sentenced Wednesday to 18 months in prison, to be followed by three years of supervised release, U.S. Attorney Leah Foley said in a statement. U.S. Senior District Court Judge Nathaniel Gorton handed down her sentence.
Mannion pleaded guilty in May 2025 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. She was charged in March 2025.
From 1998 to 2009, Mannion worked as an IRS contact representative in Andover, prosecutors said.
Between July 2020 and April 2023, Mannion prepared and filed income tax returns for other individuals with the IRS.
Even though Mannion prepared these returns on behalf of other individuals, she did not list herself as the tax return preparer.
Instead, Mannion prepared the returns to appear as if the taxpayers had prepared the returns on their own.
Mannion also listed ineligible dependents on the tax returns, resulting in higher refund amounts for which the taxpayers did not qualify without the taxpayers’ knowledge, prosecutors said.
Mannion 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, prosecutors said.
Separately, between April and October 2020, Mannion applied for Social Security retirement, spouse, and widow benefits with the Social Security Administration 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, prosecutors said.
This is a developing story. Check back for updates as more information becomes available.
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