Criminal Investigation from IRS Reveals $2.3 Billion in Tax Fraud

The Internal Revenue Service this week released the annual report of its Criminal Investigation Division, which included the identification of more than $10 billion in tax fraud and other financial crimes. Approximately $2.3 billion in tax fraud alone was identified.

This year, the CI unit focused on COVID-related tax fraud and crime, in particular. The team has been investigating cases involving fraudulent claims for Paycheck Protection Program loans, Economic Impact Payments, and payroll tax credits from the Coronavirus Aid, Relief, and Economic Security Act.

The IRS has also been focused on cybercrimes this year, including cases involving cryptocurrencies, employment taxes, identity theft, refund fraud, and international taxes.

“This year, more than any in recent memory, demonstrated the extraordinary agility and adaptability of the CI workforce,” Jim Lee, Chief of CI, said in a press release. “Clearly, unscrupulous individuals sought to exploit the economic safeguards put in place to buttress a nation in crisis. These individuals and groups were instead met with a cadre of special agents determined to thwart their efforts.”

IRS Commissioner Chuck Rettig also praised the CI team for being able to produce such big results amid the challenges posed by the pandemic.

In all, the CI unit investigated 1,598 new cases in 2020, and it spent about 73 percent of its time investigating those and other tax cases. Investigators relied on data analytics in their investigations, and it partnered with international agencies, including the Joint Chiefs of Global Tax Enforcement. The IRS hired new agents to offset planned retirements, and it increased its workforce in the unit by 1 percent.

The CI unit is the only federal law enforcement agency that has jurisdiction over federal tax crimes. Overall, the unit has a conviction rate of 90.4 percent – one of the highest in federal law enforcement.

Ensuring Tax Compliance

Many people don’t set out to cheat the IRS. Most people understand that even if they don’t see an immediate response from the IRS after filing an erroneous return, they are eventually going to hear from an auditor down the line. Most people end up on the wrong end of an IRS investigation because they don’t properly understand their tax obligations or they make an error in their filing.

If you have received notice from the IRS that you are being audited or that you are the subject of an investigation, you need to get help from a tax attorney right away. Call Silver Law PLC today. Our experienced tax attorneys represent clients in civil and criminal tax litigation, audits, and more. We’ll work to help you reduce your tax liability or to help you avoid penalties. Call us today to talk with a Peoria tax lawyer about your case and learn more about your legal options.

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