SANTA ANA, Calif. – An IRS agent who conducts audits of taxpayers has agreed to plead guilty to cheating on his own taxes.
In a plea agreement filed Monday in a U.S. District Court in Orange County, 43-year-old Jim H. Liu of Diamond Bar admitted that he filed a tax return claiming a loss on a real estate transaction when he in fact saw a large profit.
He pleaded guilty to one federal count of subscribing to a false tax return, a charge that carries a penalty of up to three years in prison.
According to the plea agreement, Liu made a profit of more than $48,000 on the sale of a property in Pomona in 2002, but reported a loss of $4,200 on his taxes.
The tax loss to the government was more than $14,000.