A former employee of the Internal Revenue Service (IRS) was sentenced in federal court in Boston for her involvement in filing false tax returns and stealing Social Security benefits.
Kathleen Mannion, 59, of Lawrence, received an 18-month prison sentence followed by three years of supervised release from U.S. Senior District Court Judge Nathaniel M. Gorton on March 4, 2026. Mannion had pleaded guilty in May 2025 to four counts of aiding and assisting in the preparation and filing of a false tax return as well as one count of theft of government money. She was initially charged in March 2025.
Mannion worked as an IRS contact representative in Andover, Massachusetts from 1998 to 2009. Authorities stated that between July 2020 and April 2023, she prepared and filed income tax returns for others without identifying herself as the preparer. Instead, she made it appear that the taxpayers had prepared their own returns. According to prosecutors, Mannion listed dependents who were not eligible on these returns, resulting in higher refund amounts that the taxpayers did not qualify for or know about. She also directed portions of these fraudulent refunds into her personal bank accounts for her own use.
In a separate scheme from April to October 2020, Mannion applied via telephone with the Social Security Administration (SSA) for retirement, spouse, and widow benefits on behalf of other individuals. Without their knowledge, she instructed SSA to deposit these benefits into her own bank accounts.
United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation at the Boston Field Office; and Amy Connelly, Special Agent in Charge of the Social Security Administration’s Office of Inspector General at the Boston Field Division announced the sentencing. Special Assistant U.S. Attorney James J. Nagelberg prosecuted the case.
“There is no place for public servants who abuse their position and betray public trust,” said United States Attorney Leah B. Foley.