WALLA WALLA -- A local man was arrested Tuesday on suspicion of committing tax fraud, authorities said.
Earnest J. Allen, 43, of 1502 Truman St., was arrested on a warrant by special agents with the Internal Revenue Service at his residence about 10:15 a.m. The agency was assisted by the Walla Walla Police Department and the Special Teams Unit in making the arrest, according to a news release.
Allen faces charges of making a false claim for an income tax refund, and conspiracy to defraud the government, according to a federal indictment.
An investigation by the IRS into Allen began years ago. He is accused of having worked with others to collect more than $50,000 from the government through the use of fraudulent tax returns using names and Social Security numbers of other individuals. Fake W2s were apparently prepared to reflect overpayment of taxes, and resulted in the fraudulent income tax returns, according to the release.
Allen faces up to 10 years in prison and a fine as high as $250,000 if convicted.
The Walla Walla Police Department reports Allen has been arrested previously in Walla Walla, with drug convictions that include delivering methamphetamine within 1,000 feet of a school bus stop.