IRVINE,
Calif., May 21, 2024 /PRNewswire/ -- The IRS
Criminal Investigation (CI) unit is responsible for conducting
financial crime investigations, including tax fraud,
money laundering, public corruption, and more. There are several
methods that they may use to uncover financial crimes. However, the
data available to CI through the Banking Secrecy Act (BSA) has
proven to be one of their most powerful tools in uncovering
instances of tax evasion.
CI relies heavily on BSA data, with nearly 88% of its criminal
tax investigations in fiscal year 2023 involving individuals or
entities with a BSA filing. BSA data has proven instrumental in
allowing CI to execute substantial asset seizures and secure
increased convictions. With a federal conviction rate of nearly 90%
and a presence across the U.S. and internationally, CI is dedicated
to prosecuting tax criminals and maintaining the integrity of the
financial system.
If you need help resolving your civil or criminal tax exposure
issues, get help from our Dual-Licensed Tax Lawyers & CPAs by
calling the Tax Law Offices of David W.
Klasing today at (800) 681-1295 or click here to schedule a
reduced rate initial consultation.
IRS Criminal Investigation Unit's Use of BSA Data
IRS CI recently disclosed using Bank Secrecy Act (BSA) data in
combating financial crimes, underscoring its effectiveness in
investigations. According to CI, in fiscal year 2023, nearly 88% of
the investigations initiated by the agency involved individuals or
entities with a BSA filing. This highlights the critical role BSA
data plays in uncovering financial wrongdoing across various
sectors.
Impact on Financial Crime Investigations
From FY21 to FY23, CI reports that BSA data played a pivotal
role in securing significant outcomes in financial crime
investigations. Notably, it contributed to an average prison
sentence of 39 months for convicted individuals and the seizure of
$7.4 billion in assets linked to
criminal activities. Furthermore, restitution orders totaling
$434 million and forfeited assets
totaling $629 million were attributed
to BSA data, representing substantial increases compared to
previous fiscal years.
Diverse Application in Investigations
CI Chief Jim Lee emphasized the
versatility of BSA data in uncovering a wide array of financial
crimes, including those related to COVID relief programs, skimming
schemes, and employment tax fraud. Among
investigations originating from BSA data in FY23, approximately 77%
relied on information from suspicious activity reports, while 63.6%
utilized data from currency transaction reports. Additionally,
fraudulent Small Business Association loans tied to COVID relief
programs, skimming incidents, and employment tax fraud
constituted significant portions of investigations leveraging BSA
data.
CI's Jurisdiction and Achievements
As the law enforcement arm of the IRS, CI holds jurisdiction
over a range of financial offenses, including tax
fraud, narcotics trafficking, money laundering, and
public corruption. Notably, CI boasts a federal conviction rate of
nearly 90%, a testament to its effectiveness in prosecuting
offenders. With 20 field offices across the United States and 12 attaché posts
internationally, CI maintains a robust presence in combating
financial crimes both domestically and abroad.
Accordingly, if you are concerned that you may be accused of a
tax crime, then you must seek legal support. Our Dual-Licensed Tax
Lawyers & CPAs can help assess your case and identify the
proper course of action. We will work diligently protect your
interests and reduce or eliminate the potential penalties you
face.
What is the Banking Secrecy Act?
The BSA is a U.S. federal law enacted in 1970 aimed at combating
money laundering and other financial crimes. It requires financial
institutions to assist government agencies in detecting and
preventing money laundering by maintaining records of cash
purchases over $10,000, filing
reports of cash transactions exceeding this amount, and filing
suspicious activity reports (SARs) for transactions that appear to
be connected to illicit activities. The BSA also imposes
requirements on financial institutions to verify the identity of
customers and maintain effective anti-money laundering
programs.
Methods the IRS Criminal Investigation Unit Uses to Uncover
Tax Crimes
Ultimately, there are several strategies that the CI may use to
uncover tax crimes. For instance, charges may stem from any of the
following:
Review of Tax Returns and Documentation
IRS Criminal Investigation meticulously reviews tax returns and
supporting documentation to detect discrepancies and irregularities
that may indicate tax crimes. By cross-referencing reported income
with other financial records and conducting thorough examinations
of tax filings, CI can identify inconsistencies or fraudulent
activities, laying the groundwork for further investigation and
potential prosecution.
Analysis of Offshore Accounts and Complex Financial
Structures
CI specializes in scrutinizing offshore accounts and complex
financial structures utilized by individuals and entities to
conceal income and evade taxes. Through comprehensive analysis of
international financial transactions and collaborations with
foreign tax authorities, CI can uncover hidden assets and income
streams, exposing tax evasion schemes and holding perpetrators
accountable for their actions.
Cooperation with Informants and Whistleblowers
CI may collaborate with informants and whistleblowers who
provide insider information on tax crimes. These individuals, often
with knowledge of fraudulent activities, can assist CI in gathering
evidence and identifying key players involved in tax evasion
schemes, enhancing the agency's ability to investigate and
prosecute offenders effectively.
Surveillance and Undercover Operations
In certain cases, CI may conduct surveillance and undercover
operations to gather evidence of tax crimes. This may involve
monitoring suspect individuals or businesses to observe their
financial activities and interactions, providing CI with valuable
insights into potential tax evasion or fraudulent behavior that can
be used in criminal investigations and prosecutions.
Partnerships with Other Law Enforcement Agencies
CI frequently partners with other law enforcement agencies, both
domestically and internationally, to uncover and combat tax crimes.
By sharing information and resources, CI can leverage the expertise
and capabilities of partner agencies to conduct comprehensive
investigations, track down tax evaders, and bring them to
justice.
Monitoring Social Media Activity
Finally, CI may monitor social media activity to gather
intelligence and evidence related to tax crimes. By analyzing
publicly available information, including posts, photos, and
interactions, CI agents can identify individuals flaunting lavish
lifestyles inconsistent with reported income or engaging in
activities suggestive of tax evasion. This information can provide
valuable leads for further investigations and enforcement actions
against tax offenders.
Contact Our Attorneys for Help with Your Tax Issue
If you have failed to file a tax return for one or more years or
have taken a position on a tax return that could not be supported
upon an IRS or state tax authority audit, eggshell audit, reverse
eggshell audit, or criminal tax investigation, it is in your best
interest to contact an experienced tax defense attorney to
determine your best route back into federal or state tax compliance
without facing criminal prosecution.
|
Note:
|
As long as a taxpayer
that has willfully committed tax crimes (potentially including
non-filed foreign information returns coupled with affirmative
evasion of U.S. income tax on offshore income) self-reports
the tax fraud (including a pattern of non-filed returns) through a
domestic or offshore voluntary disclosure before the
IRS has started an audit or criminal tax investigation /
prosecution, the taxpayer can ordinarily be successfully
brought back into tax compliance and receive a nearly guaranteed
pass on criminal tax prosecution and simultaneously often
receive a break on the civil penalties that would otherwise
apply.
It is
imperative that you hire an experienced and reputable
criminal tax defense attorney to take you through the
voluntary disclosure process. Only an Attorney has
the Attorney Client Privilege and Work Product
Privileges that will prevent the very professional that you
hire from being potentially being forced to become a witness
against you, especially where they prepared the returns that
need to be amended, in a subsequent criminal tax audit,
investigation or prosecution.
Moreover, only an
Attorney can enter you into a voluntary disclosure without
engaging in the unauthorized practice of law (a crime in
itself). Only an Attorney trained in Criminal Tax Defense fully
understands the risks and rewards involved in voluntary disclosures
and how to protect you if you do not qualify for a voluntary
disclosure.
As uniquely qualified
and extensively experienced Criminal Tax Defense Tax Attorneys,
Kovel CPAs and EAs, our firm provides a one stop shop to
efficiently achieve the optimal and predictable results that
simultaneously protect your liberty and your net
worth. See our Testimonials to see what our
clients have to say about us!
|
We Are Here for You
Regardless of your business or estate needs, the professionals
at the Tax Law Offices of David W.
Klasing are here for you. We are open for business and our
team will help ensure that your business is too. Contact the Law
Offices of David W. Klasing today to
discuss your business with one of our professionals.
In addition to our fully staffed main office in downtown
Irvine California, the Tax
Law Offices of David W. Klasing has
unstaffed (conference room only) California based satellite offices
in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San
Diego, Bakersfield,
San Jose, San Francisco, Oakland, Carlsbad, Sacramento. We also have unstaffed (conference
room only) satellite offices in Las Vegas
Nevada, Salt Lake City
Utah, Phoenix
Arizona & Albuquerque New
Mexico, Austin Texas,
Washington DC, Miami Florida and New York New York that solely handle
Federal & California Tax issues.
Our office technology allows clients to meet virtually via
GoToMeeting. With end-to-end encryption, strong passwords, and
top-rated reliability, no one is messing with your meeting. To
schedule a reduced rate initial consultation via
GoToMeeting follow this link. Call our office and request a
GoToMeeting if you are an existing client. We also now offer
a convenient scheduling option, where you can secure David W.
Klasing, Esq M.S.-Tax CPA's undivided attention for a 4-hour
consultation at any of his satellite offices.
See our Audit Representation Q and A
Library
See our Criminal Tax Law Q and A
Library
See our Non-Filer Q and A Library
Public Contact: Dave Klasing Esq.
M.S.-Tax CPA, dave@taxesqcpa.net
View original content to download
multimedia:https://www.prnewswire.com/news-releases/from-the-tax-law-offices-of-david-w-klasing---the-importance-of-bank-secrecy-act-data-in-irs-criminal-investigations-of-tax-crimes-302150720.html
SOURCE Tax Law Offices of David W.
Klasing, PC