The Internal Revenue Service (IRS) is synonymous with tax collection and tax enforcement. The enforcement unit within the IRS that investigates and pursues tax crime is called Criminal Investigation (IRS:CI).
Created in 1919, IRS:CI is well-known for the investigative skills of its special agents. It is not an overstatement to say the unit is tenacious and has a high conviction rate on the criminal tax fraud matters that it chooses to prosecute. Our law firm routinely works to assist clients who have become the subject of an IRS criminal investigation or face tax litigation. In that regard, it is helpful to understand the areas on which IRS:CI places the focus of their attention.
When pursing an investigation, IRS:CI categorizes matters into different areas. Some of those areas include:
- Gaming: With high stakes and even higher profit, illegal gambling, digital wagering, and gaming operations continue to be a source of regulatory concern. The American Gaming Association estimates Americans wager $64 billion with illegal venues and online sports. You can bet IRS:CI has a place at the table.
- Financial Institution Fraud: Probably the best-known type of tax fraud is that involving financial entities, banks, and other institutions involved in tax avoidance, money laundering, and other financial crimes.
- Employment Tax Enforcement: The unit readily investigates payroll tax issues and business owners who fail to pay over employment taxes.
- Abusive Return Preparer Enforcement: Ghost tax preparers and tax preparers that file false and fraudulent returns for clients are a frequent source of IRS:CI investigation and prosecution.
- Bankruptcy Fraud: It is common for debtors to attempt to discharge business or personal debt via bankruptcy. Pop-up businesses incur start-up debt, reap income, and then close and leave town, depositing their debt in bankruptcy court. The IRS robustly pursues its interests in bankruptcy court
- Abusive Tax Schemes: Relating to complex domestic and offshore tax holdings, the kernel of these schemes is generally hidden assets, money laundering, and foreign bank accounts.
- Bank Secrecy Act (BSA)/Money Laundering and International Investigations: Both of these investigation categories look at international financial crime, extensive cross-border tax crime, and the use of shell companies and foreign bank accounts to facilitate the illegal movement of shadow money.
Other categories include:
- General Fraud Investigations
- Healthcare Fraud
- Corporate Fraud
- Identity Theft
- Narcotics Crimes
- Non-filers
- Public Corruption
- Questionable Refund Program
The point is that IRS:CI has an extensive mandate across the board to investigate and prosecute financial crime domestically and with partners on the international stage. If you are involved in a tax scam or a complicated offshore money laundering operation, speak with an experienced criminal tax attorney to understand exit strategies other than IRS:CI at your door.
Speak with an experienced tax lawyer if you receive a notice from the IRS
Robert J. Fedor Esq. LLC serves local, domestic, and international clients challenged by tax litigation, criminal tax allegations, and offshore tax inquiries. When you need strategic, experienced representation on criminal tax matters, call 440-250-9709 or contact us online today. We have offices in Cleveland and Chicago.
