The Criminal Investigation Division’s (CI) annual report has been released by the Internal Revenue Service. The report highlights the agency’s successes and criminal enforcement actions taken in fiscal year 2020, the majority of which occurred during COVID-19. A key achievement was the identification of over $10 billion in tax fraud and other financial crimes.
“The special agents and professional staff who make up Criminal Investigation continue to perform at an incredibly high-level year after year,” said IRS Commissioner Chuck Rettig. “Even in the face of a global pandemic, the CI workforce initiated nearly 1,600 investigations and identified $2.3 billion in tax fraud schemes. This is no small feat during a challenging year, and their work is critical to protecting taxpayers and the integrity of our tax system.”
The CI’s key focuses for the 2020 fiscal year included COVID-19 related fraud and cybercrimes, with an emphasis on virtual and cryptocurrencies, traditional tax investigations, employment tax, international tax enforcement, refund fraud, and tax-related identity theft.
CI special agents quickly adapted their investigative techniques for COVID-19 crimes to initiate cases into fraudulent claims for Economic Impact Payments, Paycheck Protection Program(PPP) loans, and refundable payroll tax credits from the Coronavirus Aid, Relief, and Economic Security Act.
“This year, more than any in recent memory, demonstrated the extraordinary agility and adaptability of the CI workforce,” said Jim Lee, Chief of CI. “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.”
In fiscal year 2020, CI initiated 1,598 cases, applying 73% of its time to tax related investigations. The number of CI special agents increased by one percent, following special agent hiring to offset planned retirements. CI continued increasing its usage of data analytics and strengthening its international partnerships to assist in finding the most impactful cases. One important partnership remained the Joint Chiefs of Global Tax Enforcement(J5); a transnational committee comprised of tax organizations from five countries. In FY 2020 alone, more information was shared regarding cryptocurrency, tax crimes, and related enforcement, than in the previous ten years combined.
As the only federal law enforcement agency with jurisdiction over federal tax crimes, CI has one of the highest conviction rates in federal law enforcement at 90.4%. The high conviction rate reflects caliber and thoroughness of CI agents. CI is routinely called upon by prosecutors and partner agencies across the country to lead financial investigations on a wide variety of financial crimes.
“While the annual report is an excellent summation of the hard work and dedication exhibited by CI, this year’s report takes on special significance,” Lee said. “This report unequivocally reflects the efforts of a workforce undaunted by unprecedented personal and professional challenges. I am profoundly grateful to serve with the men and women of CI.”
The federal fiscal year begins Oct. 1 and ends on Sept. 30.
To read more about tax fraud, read this blog article we wrote earlier this year.
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