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IRS employee implicated
in D.C. property tax scam

December 26, 2007

An IRS manager and his estranged wife are the latest individuals charged in connection with a Washington, D.C., property tax scam, first blogged about here.

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According to various news reports (Washington Post, WJLA, NBC4 and WTOP), Robert O. Steven and Patricia A. Steven were arraigned in U.S. District Court on charges of illegally receiving and cashing at least $2.8 million in 11 fraudulent property tax refund checks.

The scheme allegedly involved D.C. Revenue Office employees who generated property tax refunds for companies that did not exist or were not owed a refund. Once the improper clerks were issued, the defendants allegedly diverted and cashed them.

Steven is a division director of the IRS’ New Carrollton, Md., office. Among the items he purchased with the allegedly ill-gotten D.C. tax office gains were four Jaguar cars. In fact, FBI agents reportedly put a Global Positioning System device on his 2007 Jaguar convertible to track Steven’s movements.

His wife, Patricia Steven, from whom he’s separated, reportedly is a close friend of the key defendant in the case, Harriette Walters. The two women allegedly spent thousands of scammed dollars on numerous shopping trips.

Authorities also have taken steps to seize two homes in New Jersey that Walters and Steven allegedly used stolen D.C. tax money to pay for, at least in part.

Prosecutors say the scam appears to have been operating since 1990. So far, 10 people have been arrested and authorities have identified fraudulent checks totaling at least $20 million.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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