IRS
Criminal Investigation releases Fiscal Year 2020 Annual Report; Identifies $2.3
billion in tax fraud
WASHINGTON — The Internal
Revenue Service today released the Criminal Investigation Division's annual report, highlighting 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."
Key focuses of CI in fiscal
year 2020 included COVID-19 related fraud, cybercrimes, with an emphasis on virtual and cryptocurrencies, traditional tax investigations, international tax
enforcement, employment tax, refund fraud and tax-related identity theft.
In response to COVID-19 related
crimes, CI special agents quickly adapted their investigative techniques to
initiate cases into fraudulent claims for Economic Impact Payments, Paycheck
Protection Program 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. CI
also saw the first guilty pleas for a case under the J5 umbrella.
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 the thoroughness of CI investigations and the high
caliber 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 2020 report is interactive,
summarizes a wide variety of CI activity during the year and features examples
of cases from each field office on a wide range of financial crimes. The
federal fiscal year begins Oct. 1 and ends on Sept. 30.
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