An IRS revenue agent was arrested at Los Angeles International Airport after he was indicted a few days earlier by a grand jury on charges of tax fraud and obstructing an investigation into his tax return.
Jim Liu, 42, of Diamond Bar, Calif., claimed on his tax return that he had suffered a loss on a real estate sale when he had actually realized a profit. Liu has been released on a $30,000 bond and is scheduled for arraignment on Nov. 24.
The indictment alleges that during the IRS audit of Liu's tax return, he provided false documents and made false statements to the IRS in an attempt to obstruct the audit. As an IRS revenue agent, his job is to audit other taxpayers.
Liu allegedly mailed and faxed documents to the IRS that falsely stated that he bought the property for $231,250, when he knew that he had actually purchased it for $185,000. Liu was investigated by the Treasury Inspector General for Tax Administration.
If convicted, he faces up to 13 years in prison.
