IRS CI Highlights 2020 Enforcement Efforts During International Fraud Awareness Week

Combating tax fraud at the international level is among the Internal Revenue Service’s top priorities. The IRS' Criminal Investigations division (IRS CI) is particularly active in this area, and it works with other tax enforcement authorities around the globe to identify, prosecute, and punish individuals and organizations suspected of engaging in fraudulent practices. As Maryland international tax attorneys, we have significant first-hand experience in this area, and we have successfully defended numerous clients in international tax fraud matters involving IRS CI.

Recently, IRS CI highlighted some of its international enforcement activities during International Fraud Awareness Week. In a public message touting the department’s successes, IRS CI Chief James C. Lee wrote that, “[IRS CI] opened more investigations in FY20 than we did in FY19 in most of our program areas, our conviction rate is still the highest in federal law enforcement, and we are the go-to agency for complex financial investigations in the world.” His public message continues:

“Our investment in cybercrimes and data analytics has positioned us to be at the forefront of cases involving cryptocurrency . . . . Our partnerships with the J5—the Joint Chiefs of Global Tax Enforcement—are now seeing enforcement results. . . . [a]nd our ability to share, ingest, [and] use data from our federal partners with our Nationally Coordinated Investigations Unit (NCIU) has enabled us to anticipate certain criminal schemes and react with unprecedented speed to investigate and stop additional financial fraud . . . .”

What Constitutes International Tax Fraud?

International tax fraud can take many different forms, and IRS CI is active in targeting all types of fraud that result in underpayment of federal income tax liability or financial harm to U.S. taxpayers. In particular, IRS CI’s recent efforts have targeted offenses such as:

• Anti-money laundering (AML) violations
• Cryptocurrency fraud
• Foreign Account Tax Compliance Act (FATCA) violations
• Foreign Corrupt Practices Act (FCPA) violations
• Other offshore reporting and disclosure violations

Depending upon the circumstances involved, allegations of these (and other) international fraud offenses can lead to criminal enforcement action by IRS CI or the imposition of civil or administrative penalties by the U.S. Department of the Treasury. In any case, the consequences can be severe, and it is imperative for individuals and organizations that are targeted to execute proactive and strategic defenses.

What Should You Do if You are Contacted by IRS CI?

If you are contacted by IRS CI, what should you do? The most important thing you can do is to engage experienced tax defense counsel promptly. At Thorn Law Group, we have decades of experience in representing individuals and businesses in international tax fraud investigations, and our attorneys can work quickly to help you achieve a favorable resolution.

Speak with a Maryland International Tax Attorney at Thorn Law Group

If you would like more information about our firm’s international tax fraud defense practice, we invite you to schedule a confidential initial consultation. To request an appointment with Maryland international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 240-235-5096, email ket@thornlawgroup.com or contact us online today.