Inappropriate look at tax info results in guilty plea

A Lakewood woman formerly employed by the Internal Revenue Service pleaded guilty on Aug. 9 to accessing taxpayers' tax returns and return information without authorization, U.S. Attorney Christopher J. Christie announced.

According to a press release from Christie's office, Diane Snyderman, 61, pleaded guilty to a misdemeanor charge of unauthorized inspection of returns or return information, which carries a maximum statutory sentence of up to one year in prison, a $1,000 fine and dismissal from federal employment.

Snyderman resigned voluntarily as an IRS revenue officer effective July 6, after the investigation began in 2006.

Snyderman entered her guilty plea before U.S. Magistrate Judge Patty Shwartz, sitting in Newark, who scheduled sentencing for Nov. 16.

Federal law strictly prohibits IRS and other government employees from unauthorized access of tax returns and information. As a revenue officer, Snyderman's authorized access was limited only to tax cases specifically assigned to her.

"We want taxpayers to be assured that their privacy rights will be vigorously protected," said Christie. "We also want IRS and other government employees to understand the consequences for violating the strict protections against accessing confidential tax information."

According to a criminal complaint filed against Snyderman, an investigation by the Treasury Department's Inspector General for Tax Administration began after it was determined Snyderman had accessed the tax return and return information of her accountant of 30 years.

An audit trail subsequently revealed that Snyderman inspected tax returns and or return information of approximately 56 individuals who were also clients of the same accountant, family members and friends and others.

According to the complaint, Snyderman's unauthorized computer accesses of tax returns and return information occurred between about August 1997 and September 2006 at an IRS field office in Ocean Township, Monmouth County. Snyderman's employment with the IRS began in 1991.

For purposes of her guilty plea, Snyderman specifically admitted before Shwartz that she accessed the tax returns of a husband and wife upon the request of the wife's father, a longtime friend of Snyderman. The husband and wife later separated and sold their home.

Snyderman, a licensed real estate agent, received a $1,563 referral fee from the real estate company that sold the couple's home. Snyderman admitted that she also failed to inform the IRS of her conflicting relationship with the real estate company.