IRS enrolled agent indicted for conspiracy to defraud the IRS

 

Date: September 11, 2020

Contact: newsroom@ci.irs.gov

HARRISBURG - Frank Kelly of New Cumberland, Pennsylvania, was indicted on August 26, 2020, for conspiracy to defraud the Internal Revenue Service. Kelly appeared before United State Magistrate Judge Martin C. Carlson on September 4, 2020 and pled not guilty to the charge. Trial is scheduled for November 2, 2020, before United States District Court Judge Jennifer P. Wilson. 

According to United States Attorney David J. Freed, Kelly was an enrolled agent with the IRS which permitted him to represent clients who were being audited by the IRS. The indictment alleges that in 2014 Kelly conspired with a client to defraud the IRS with respect to the client's 2010, 2011, and 2012 tax returns which were under civil audit. Specifically, it is alleged that Kelly knowingly made false statements to the Revenue Agent who was conducting the audit that resulted in a lower amount of taxes being assessed against the client.

The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Assistant United States Attorney Kim Douglas Daniel for prosecution.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.