Commentary and information about public safety and security, intelligence and counterintelligence, open government and secrecy, and other issues in northern Idaho and eastern Washington.

Location: Coeur d'Alene, Idaho, United States

Raised in Palouse, WA. Graduated from Washington State University. US Army (Counterintelligence). US Secret Service (Technical Security Division) in Fantasyland-on-the-Potomac and Los Angeles. Now living in north Idaho.

Thursday, January 25, 2007

IRS Criminal Investigations

Usually our contact with the Internal Revenue Service (IRS) is limited to filing our federal income taxes on or before April 15. Most of us are honest. We try to calculate our personal and business federal income taxes correctly. We pay our taxes on time. Sometimes we make an honest or procedural error which results in a closer examination of our tax return or with other adjustments to our tax liability.

When someone crosses the line that separates an honest mistake or misunderstanding from an intentional evasion, it becomes a criminal matter for IRS Criminal Investigation (CI). CI is comprised of approximately 4,400 employees worldwide, approximately 2,800 of which are special agents whose investigative jurisdiction includes tax, money laundering and Bank Secrecy Act laws. While other federal agencies also have investigative jurisdiction for money laundering and some bank secrecy act violations, IRS is the only federal agency that can investigate potential criminal violations of the Internal Revenue Code.

The IRS's Enforcement Strategy - CI is outlined here.

Its FY 2007 Annual Business Plan is here. Pay particular attention to Goal and Objective II. Enhance Enforcement of the Tax Law.

Finally, to get a better idea of how the IRS-CI approaches its criminal investigations, look at the IRS CI Investigation Manual.

As noted earlier, the IRS is unique because it is the only federal agency that can investigate potential criminal violations of the Internal Revenue Code. Those investigations can involve public corruption as well. Some examples of IRS-CI public corruption crimes investigation are here.

Most of us do not need to be overly concerned about becoming the focus or target of an IRS-CI investigation. Only those who foolishly and arrogantly believe they can successfully evade paying their fair share of federal taxes need have sleepless nights.