After being slowed by the COVID-19 pandemic in 2020, the Internal Revenue Service’s Criminal Investigation Division (IRS CI) is aggressively targeting taxpayers in 2021. IRS CI announced well over 100 criminal investigations in March, and it is set to surpass this monthly total in April. This far exceeds the monthly totals from the same time period last year. As Maryland tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, IRS CI’s recent enforcement activity highlights some notable trends for U.S. taxpayers residing both domestically and abroad.
IRS CI is Targeting Taxpayers and Tax Preparers in Maryland
With its headquarters just across the river, IRS CI is actively targeting taxpayers and tax preparers in Maryland. This is evident from the division’s recent press releases, which include multiple announcements of charges filed against Maryland residents. For example, in March and April 2021, IRS CI announced charges including:
- Charges against a former executive who was sentenced to two years of federal imprisonment for various tax-related crimes.
- Charges against a former Maryland tax preparer who pleaded guilty to federal tax fraud conspiracy.
- Charges against a Maryland resident who was sentenced for money laundering as a result of her role in a drug trafficking ring.
- Charges against a Maryland resident who is accused of fraudulently obtaining a $1.5 million Paycheck Protection Program (PPP) loan.
- Charges against another former Maryland tax preparer who is accused of conspiring to help her clients commit federal income tax fraud.
IRS CI has Identified Several Enforcement Priorities for 2021
These recent cases targeting Maryland residents highly some of IRS CI’s enforcement priorities for 2021. For example, IRS CI is cracking down on tax preparer fraud, and it has made clear that it will be vigorously pursuing cases against taxpayers suspected of defrauding the PPP and other COVID-19 relief programs. As IRS CI’s complete list of press releases for the first four months of 2021 show, the division is also emphasizing enforcement in the areas of:
- International tax fraud
- Offshore account disclosure
- Corporate tax evasion and other fraud schemes
- Cryptocurrency tax fraud
- Tax evasion linked to other types of criminal activity
What Should You Do if Targeted by IRS CI in Maryland?
If you are targeted in a federal tax fraud investigation, what should you do? First and foremost, you need to engage experienced defense counsel. You need a Maryland tax attorney who has specific and extensive experience handling cases involving IRS CI. Your attorney will need to work quickly to intervene in the investigation and identify the allegations at issue, and then you and your attorney will need to work together to build a strategic defense.
Contact Maryland Tax Attorney Kevin E. Thorn, Managing Partner of Thorn Law Group
If you have questions about avoiding or defending against an IRS CI investigation, we strongly encourage you to contact us right away. To schedule a consultation with Maryland tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, call 240-235-5096, email ket@thornlawgroup.com or contact us confidentially online now.
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