The IRS-Criminal Investigation (“IRS-CI”) 2024 Annual Report holds some interesting statistics about the agency’s operations in fiscal year 2024. Let’s break down some key takeaways from the Annual Report:
1.) IRS-CI investigates more than tax crimes. In FY 2024, IRS-CI identified $2.12 billion in tax fraud, but $7.03 billion in other financial crimes. While almost 70% of IRS-CI’s time was spent investigating tax crimes, approximately 17% of its time was spent on non-tax matters (such as other financial crimes) and approximately 11% of its time was spent on narcotics cases.
2.) If IRS-CI investigates you, and if your case is recommended for prosecution, the odds are you will be convicted. In FY 2024, 1,794 cases were referred for prosecution, resulting in 1,571 convictions – a rate above 90%. IRS-CI consistently has a conviction rate of 90%+.
3.) In FY 2024, IRS-CI seized more than $925 billion in assets for cyber-related matters. Cyber crimes, including cryptocurrency cases, are an increasing focus of the IRS in general and IRS-CI in particular.
4.) Employee Retention Credit cases became a focus of IRS-CI in FY 2024, a focus which will likely intensify. In FY 2024, IRS-CI opened 493 ERC investigations into more than $5.5 billion potentially fraudulent ERC claims. More ERC criminal investigations are likely, as are criminal investigations into Paycheck Protection Program (PPP) fraud.
5.) Syndicated conservation easements have been a hot button issue for the IRS for several years. In FY 2024, a CPA and an attorney were sentenced to 25 and 23 years in prison, respectively, for their roles in more than $1.3 billion of “abusive” syndicated conservation easements.
If an IRS Special Agent shows up at your door, workplace, or accountant’s office, it is a very serious matter. You should immediately contact an attorney for advice and should not speak to the agent.
