Health & Fitness
IRS Criminal Investigations Reports Increase in Enforcement in 2013
The IRS Criminal Investigations Division has reported large increases in the number of cases initiated and prosecuted in fiscal year 2013, with a conviction rate of 93%.
The focus of our practice is assisting taxpayers with complex financial issues, including bankruptcy & financial restructuring and civil and criminal taxpayer representation, and we represent many taxpayers in Greenwich, Connecticut and elsewhere before the IRS Criminal Investigations Division.
In the release of its latest report, the IRS Criminal Investigations Division made some significant increases in its enforcement activities during 2013, including:
The number of investigations initiated increased by 12.5 percent,
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The number of prosecutions increased by nearly 18 percent,
CI initiated 5,314 cases and recommended 4,364 cases for prosecution.
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Meanwhile, convictions in criminal tax cases rose more than 25 percent compared to the prior year. The conviction rate for fiscal 2013 was 93 percent. What is more interesting is that all of these increases occurred at a time when agent resources decreased more than 5 percent, largely due to budget cuts at the agency.
In stepping up the fight against identity theft, IRS Criminal Investigation initiated over 1,400 investigations, according to the report, and recommended prosecution of over 1,250 people who were involved in identity theft crimes during fiscal year 2013.
IRS CI is also an active partner in more than 35 Identity Theft Task Forces, the report pointed out, where the unit works side-by-side with federal, state and local law-enforcement agencies to combat the threat of identity threat.
Throughout its history, it is worthy to note that the IRS Criminal Investigations Division has never had a less than 90% conviction rate for those cases it takes and are ultimately prosecuted. The reasons for this include the fact that cases initiated and investigated by CI are reviewed by both the Department of Justice Tax Division and the local Assistant United States Attorney, so they are very thorough. Also, tax defendants do not generally do well in front of jurors. Well-heeled tax defendants are not sympathetic t0 jurors who never had nor will have a life style remotely as nice as the defendants.
You should also know that, although jurors may not like the IRS, they dislike other taxpayers who do not pay their fair share even more!
The key, as always, if when a taxpayer or their tax practitioner learns that the case has been referred to the IRS Criminal Investigations division that we get involved early to try and get the investigation killed by showing their either was no fraud, or that the case is so problematic that convincing a jury is unlikely.
If you have any questions about civil or criminal issues in Greenwich, Connecticut or elsewhere please feel free to contact me at (203) 285-8545 or by email at egreen@gs-lawfirm.com.
243 Tresser Boulevard, 17th Floor
Stamford, CT 06901
Ph. (203) 285-8545 x 102
Fax (203) 286-1311
