IRS Agent Pleads Guilty to Soliciting a Bribe to Stop an Audit -- $5,000 and a Free Lunch

The U.S. Attorney for the Southern District of New York has announced that former IRS agent Robert Rosner has pleaded guilty today to soliciting a bribe from a taxpayer:

On July 25, 2006, Rosner initiated an audit of a small business based in New York, New York (the "Company"). On November 28, 2006, Rosner contacted the head of the Company (the "Victim") to discuss the audit. Rosner requested that the Victim treat Rosner to lunch. During the lunch, Rosner told the Victim that he would terminate the IRS audit of the Company if the Victim paid Rosner $5,000. The Victim agreed to pay the bribe.

On December 1, 2006, Rosner submitted internal paperwork at the IRS recommending that no change be made to the Company's tax returns. This step effectively ended the IRS audit of the Company. Two days later, the Victim had a conversation with Rosner, which, unbeknownst to Rosner, was recorded. The Victim told Rosner that the Victim did not feel comfortable with the agreement to pay the bribe. Rosner responded that he had already relied on the Victim's acceptance of the offer and taken steps within the IRS to conclude the audit. The Victim agreed to discuss the issue with Rosner further the next day. Two days later, the Victim received a telephone call from Rosner during which Rosner stated that he had closed the audit of the Company.

Press and blogosphere coverage:

• Newsday
• Web CPA