St. Louis Tax Preparer Admits Stealing Client Funds

ST. LOUIS - A tax preparer from St. Louis on Thursday admitted stealing at least $52,000 in clients' tax refunds and COVID-19 stimulus payments.

Mark A. Murphy, 40, pleaded guilty to one count of theft of government property. Between 2016 and 2020, Murphy prepared tax returns for clients but did not list himself as the paid return preparer, instead making it appear that the taxpayers themselves had submitted the returns. He also signed the taxpayers' names and opened bank accounts for clients without their knowledge or authorization. Murphy then used these unauthorized bank accounts to collect his tax preparation fees from clients' tax refunds.

During the COVID-19 pandemic, Murphy stole Economic Impact Payments (EIPs) that were issued by the IRS to his clients. The EIPs were issued directly to taxpayers and deposited into the bank accounts designated on the 2018 or 2019 federal income tax returns. Murphy withdrew the EIP funds in cash from the bank accounts he had secretly set up and used debit cards linked to the accounts to make personal purchases. During this period, Murphy also kept some clients' entire tax refunds for himself. Murphy stole a total of at least $52,080 in EIPs and refunds from clients from April 2020 to March 2021.

Murphy is scheduled to be sentenced on June 9. The theft charge carries a maximum penalty of 10 years in prison. He will also be ordered to repay the money.

The Treasury Inspector General for Tax Administration (TIGTA) and IRS - Criminal Investigation handled the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.