The latest Annual Report of the Internal Revenue Service Criminal Investigation (IRS: CI) has been released. IRS: CI is a complex unit with a broad mandate. The annual report offers a glimpse of investigative efforts and successes in the moment.
At a glance, a good year for prosecuting federal tax crimes
IRS: CI is the only federal agency with jurisdiction to investigate federal tax crimes. In the report, IRS: CI Chief Guy Ficco notes the unit enjoyed a 90 percent conviction rate. For those coloring outside the regulatory lines, this is an impressive statistic. Even in years when the unit is operating with a deficient budget, the success rate of the IRS in prosecuting tax crimes is notable. With that in mind, here are some stats:
- In terms of IRS criminal investigations, the unit spent approximately 69 percent of its time on tax matters, 11 percent on narcotics, and 17 percent on non-tax matters. Non-tax matters can include money laundering, public corruption, and other fraud schemes.
- IRS: CI identified $2.1 billion in tax fraud. Pursuit of these matters led to 615 defendants given prison sentences of an average of 27 months. The unit also identified $7.03 billion from other financial crimes.
- The unit executed 1,154 warrants and referred 1,794 matters for prosecution. Of the 1,794 matters prosecuted, IRS: CI obtained 1,571 convictions, with a 90 percent success rate.
- The highest source of investigations (in order) were federal agencies, the U.S. Attorney’s Office, IRS: CI, Financial Crimes Enforcement Network (FinCen), the public, IRS civil matters, and state and local government.
- The number of criminal investigations associated with the digital world continue to grow. In 2024, IRS: CI handled 111 cyber matters and seized assets worth approximately $925,728,496. Of the 111 initial cases, 72 were recommended for prosecution.
- IRS:CI is composed of units which include the Office of the Chief, Strategy, Cybercrime and Forensic Services, Advanced Analytics and Innovation, Technology Operations, Global Operations and Field Operations.
The 2024 statistics are laudable and fair warning to taxpayers skirting their tax responsibility as well as actors involved in larger criminal tax schemes. It must be noted that the mandate and direction of IRS:CI going forward may be significantly different than in previous years, including 2024.
Some of the forward movement at the IRS resulted from a budget boost, which gave the bootstrapped agency the opportunity to update technology and refresh its workforce. With the incoming administration, many of the newly hired workers have been laid off. The 2025 IRS: CI Annual Report should make for interesting reading.
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If the IRS: CI seems too close for comfort, speak with one of our criminal tax lawyers. At Robert J. Fedor, Esq., L.L.C., we provide strong legal representation with the experience to advise you on options to help you avoid or deal with criminal charges. Contact our legal team today at 440-250-9709. We serve clients. internationally and in Northeast Ohio, Chicago, and New York City from our offices in Cleveland and Chicago.
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