With everything that’s transpired on Capitol Hill over the last few months, it’s understandable how a person might have missed the news that the Internal Revenue Service Criminal Investigation Division had released its annual report.
For those unfamiliar with this somewhat arcane document, it essentially summarizes the investigatory actions taken by the division over the preceding 12 months and sets forth priorities for the coming year.
One of the more fascinating aspects of the annual report — and this year was no different — is that it demonstrates the areas that CI currently considers a priority. Indeed, the following criminal offenses saw the largest number of investigations initiated:
- Money laundering (1201)
- Narcotics (788)
- Identity theft (573)
- Bank Secrecy Act violations (504)
Given this focus, the question naturally arises as to just how concerned CI is with more run-of-the-mill tax crimes. To that end, the report reveals the following:
- Questionable refund program (495)
- International operations (221)
- Non-filer (206)
- Employment tax (137)
- Corporate fraud (62)
Numbers like these would certain cause the average person to conclude that not only has CI made traditional tax crimes less of a priority, but that it’s also operating on a shoestring budget.
Statistics would, of course, seem to support this theory, as the total number of CI investigations initiated from 2013 to 2016 dropped by a remarkable 36 percent, while the number of CI agents dropped by nearly 13 percent during this same timeframe.
Experts indicate, however, that people should not make the mistake of underestimating the capacities or the willingness of CI.
Indeed, they argue that the deep budget cuts sustained by the agency over the last few years may rapidly become a thing of the past if CI keeps building high-profile cases demonstrating its worth to Congress. A person needn’t look any further than the recent raid at Caterpillar’s U.S. headquarters for evidence of this strategy.
It will, of course, be interesting to see what transpires in the years ahead. In the meantime, if you learn that you are under investigation for any manner of tax-related offense by the IRS, it’s imperative to consider speaking with a skilled legal professional as soon as possible.