A US court has indicted Clinton Dale, a 51-year-old former Internal Revenue Service employee, on 12 counts of willfully filing false tax returns for allegedly laundering money for drug dealers.
According to his indictment, Mr Dale owned and operated a tax preparation business, Blue Bear Tax Solutions in Denver, Colorado.
He allegedly designed a scheme to conceal the nature and source of income earned through drug deals by certain clients through the business.
Mr Dale was accused of creating false businesses and filing false individual tax returns for the drug dealer clients.
These returns allegedly reported that his clients earned income through lawful businesses instead of illegal drug sales and claimed improper business expenses to reduce the amount of taxes they owed.
The 51-year-old previously worked as a contract representative and revenue agent with the IRS before resigning in 2014 rather than being terminated.