The IRS has recently charged an employee with insider trading due to the illegal disclosure of confidential documents pertaining to the tax returns of President Donald Trump and other wealthy Americans.
John Fry, who was employed as an outside IRS consultant, was arrested by federal agents last week after being charged with two counts of unlawful disclosure of tax returns. According to the complaint, Fry profitable traded the information he obtained when he had access to the IRS’s electronic filing system.
The leak was discovered after Fry made mention of a confidential return while outside a restaurant in October. That disclosure led the IRS to investigate Fry and trace the source of the leak, which became Fry.
Fry now stands accused of disclosing tax returns in violation of Section 7213(a) of the Internal Revenue Code, which makes it illegal for anyone with access to IRS returns or return information to disseminate this data without authorization.
Fry has pleaded not guilty to the charges and his attorney has spoken out publicly defending his innocence. The government alleges that Fry used his access to the returns to gain a financial advantage, as the prosecution has no evidence of Fry’s motivations for leaking the information.
This case is sure to draw much interest as it progresses, as it speaks to the importance of protecting confidential information. It also shines a light on the need for robust security protocols within the government, and any organization that processes confidential documents.
The IRS has stated that it takes the allegations seriously and that that its investigation is ongoing. They have also reminded the public that unauthorized disclosure of tax returns is a felony punishable by law.