Could You Be on IRS CI’s Enforcement Radar in 2021?

The Internal Revenue Service’s Criminal Investigation Division (IRS CI) is having a busy year. After pursuing a relatively low number of investigations in 2020 (no doubt attributable in no small part to the COVID-19 pandemic), IRS CI now seems to be making up for lost time. So, could you be on IRS CI’s enforcement radar for 2021? In this article, Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, provides his insights on IRS CI’s current law enforcement priorities.

What is IRS CI Investigating in 2021?

IRS CI’s investigations to date in 2021 have demonstrated the division’s commitment to targeting all types of tax evasion and tax fraud. It is targeting individual and corporate taxpayers in the U.S. and abroad, and it is targeting offenses ranging from filing false tax returns to fraudulently obtaining tax relief during the COVID-19 pandemic.

What Offenses are Getting the Most Attention in 2021?

While IRS CI is pursuing individual and corporate taxpayers for all types of tax-related offenses, it is also prioritizing certain types of cases. In particular, IRS CI has shown particular interest in conducting investigations targeting offenses such as:

• Tax preparer fraud
• International tax fraud
• Failure to disclose offshore accounts
• COVID-19 relief fraud
• Drug-related tax crimes
• Corporate tax evasion and other fraud schemes

How Does IRS CI Decide Which Taxpayers to Target?

IRS CI relies on a number of different sources of information in order to decide where to focus its investigative efforts. Of course, many criminal tax investigations flow from IRS audits of taxpayers’ returns. However, IRS CI also works with other law enforcement agencies in the U.S. and abroad, and it often acts on tips received from employees and other private citizens.

Does IRS CI Focus Its Efforts in Certain Geographic Regions?

IRS CI conducts its enforcement efforts nationwide, but it also devotes additional resources to certain areas. This includes Boston. For example, on April 9, 2021, IRS CI announced criminal fraud charges against a Boston-area real estate developer who is accused of perpetrating a “multi-year tax evasion scheme” that cost the government nearly $500,000.

How Will I Know if I am Under Investigation by IRS CI?

You might not know if you are under investigation by IRS CI—at least not right away. Agents will inform you of the investigation when they want you to know, possibly through the issuance of a subpoena or other demand for testimony or production of documents.

What Should I Do if I Have Concerns?

If you are concerned that you might become the target (or might already be the target) of an IRS CI investigation, you should contact a Boston tax attorney promptly. You may be able to mitigate any potential penalties by utilizing IRS CI’s Voluntary Disclosure Program (VDP). However, this option is not available to all taxpayers; and, when pursuing this option, it is important to understand the potential risks involved.

Contact Boston Tax Attorney Kevin E. Thorn, Managing Partner of Thorn Law Group

Do you have questions or concerns about a possible criminal tax investigation? If so, we encourage you to contact us right away. To speak with Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, call 617-692-2989, email ket@thornlawgroup.com or inquire online now.