Enforcement Strategy - Criminal Investigation (CI)
The American system of taxation is based on the premise that all income is taxable (which includes illegally earned income). In many instances, proving that a taxpayer willfully attempted to hide income from the Federal Government is an integral part of proving other criminal activity including fraud, money laundering or Bank Secrecy Act violations. Their methods of proof and investigative activities lead IRS special agents into nearly every legal as well as illegal business in America.
There are strict procedures IRS special agents must follow before an investigation is recommended for prosecution to the Department of Justice. These procedures include approval by several IRS officials to ensure investigations are based on factual evidence that tax fraud or another financial crime has occurred.
Criminal Investigation issues an Annual Business Plan each fiscal year to further set priorities and guidance for field offices. Overall our investigations fall into four interdependent categories: Legal Source Tax Crimes, Illegal Source Financial Crimes, Narcotics-Related Financial Crimes and Counterterrorism Financing.
United States Code Statutes
United States Code Statutes For Which Criminal Investigation Has Jurisdiction
Internal Revenue Manual
IRM, Part 9, Criminal Investigation
Criminal Investigation (CI)
Tax Fraud Alerts
Page Last Reviewed or Updated: March 13, 2009