IRS Criminal Enforcement Actions on the Rise

The Internal Revenue Service (IRS) Criminal Investigation (CI) reports an increase in enforcement actions and penalties imposed on convicted tax criminals during fiscal year 2012. The Annual Report serves as both self-promotion for the IRS and a warning to taxpayers.

The IRS has increased the number of criminal tax investigations they have initiated for the past two consecutive years. They are bound to feel pressure to keep this string going.  That may mean more scrutiny on individual taxpayers and businesses.

In an IRS press release, Richard Weber, Chief of Criminal Investigations said,

This annual report showcases some of the many significant cases that were completed by CI during fiscal year 2012 and the many program areas we cover as an organization. These cases are just a few examples of the thousands of investigations initiated by CI last year, as we continue to make our mark as the finest financial investigators in the world.

Report Highlights

Areas covered in the report include:

  • tax fraud
  • identity theft
  • offshore tax evasion
  • public corruption
  • money laundering
  • other financial crimes

 FY 2012

FY 2011

% Increase

Investigations

5125

4720

8.6%

Prosecution Recommendations

3701

3410

8.5%

Indictments/Informations

3390

2998

13.1%

Convictions

2634

2350

12.1%

Sentenced (includes detention in a federal prison, halfway house, home detention or some combination)

2466

2206

11.8%

 

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