The following examples are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted.
Examples of Abusive Return Preparer Investigations
Taxpayers should be very careful when choosing a return preparer. While most preparers provide excellent service to their clients, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. It is important to know that even if someone else prepares your return, you are ultimately responsible for all the information on the tax return.
Examples of Abusive Tax Scheme
Abusive tax scheme originally took the structure of abusive domestic and foreign trust arrangements. However, these schemes have evolved into sophisticated arrangements that take advantage of the financial secrecy laws of some foreign jurisdictions and the availability of credit/debit cards issued from offshore financial institutions.
Examples of Bankruptcy Fraud Investigations
One of Criminal Investigation's goals in bankruptcy fraud investigations is to increase voluntary compliance with federal tax laws through the prosecution of those committing significant crimes in the bankruptcy arena. Since the IRS is often a major creditor in many bankruptcy proceedings, it is important that we protect the interests of the IRS.
Examples of Corporate Fraud Investigations
Criminal Investigation is involved in most of the regional corporate fraud task forces because of our financial investigative expertise. Also, corporate fraud frequently involves violations of the Internal Revenue Code (IRC) through falsification of corporate and individual tax returns and CI has exclusive investigatory jurisdiction over criminal violations of the IRC.
Examples of Employment Tax Investigations
Employment tax evasion schemes can take a variety of forms. Some of the more prevalent methods of evasion include pyramiding, employee leasing, paying employees in cash, filing false payroll tax returns or failing to file payroll tax returns. Evading employment taxes can have serious consequences for employers and the employees.
Examples of Financial Institution Fraud Investigations
Criminal Investigation focuses on tax and money laundering violations involving fraud against banks, savings and loan associations, credit unions, check cashers, money remitters, and other financial institutions. Currency Transaction Reports and Suspicious Activity Reports continue to be effective investigative tools in the financial world.
Examples of Gaming Fraud Investigations
Illegal gaming operations, including bookmaking, numbers, Internet and some charitable gaming operations, continue to be areas of compliance concern. Criminal Investigation continues to play an enforcement role in the illegal gaming industry and to support regulatory and legislative initiatives aimed at eliminating an environment conducive to illegal gambling.
Examples of General Tax Fraud Investigations
The efforts of Criminal Investigation are directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of voluntarily filing income tax returns and/or paying the correct amount of income, employment, or excise taxes. These individuals pose a serious threat to tax administration and the American economy.
Examples of Healthcare Fraud Investigations
Multi-agency healthcare fraud investigations and prosecutions show that perpetrators of these schemes financially benefited from their fraudulent activities in false billings, mental health, nursing home fraud, chiropractic fraud, durable medical equipment fraud, staged accidents, pharmaceutical diversion, and patient referral (kickbacks) schemes. In these investigations, Criminal Investigation follows the money trail and considers both tax and money laundering perspectives.
Examples of Insurance Fraud Investigations
Insurance Fraud can involve tax law and/or money laundering violations relative to insurance claims and fraud perpetrated against insurance companies. The variety of schemes include agent/broker premium diversion, phony insurance companies, offshore/unlicensed Internet companies, staged auto accidents, viatical and senior settlement.
Examples of Money Laundering Investigations
Money laundering is a very complex crime involving intricate details, often involving numerous financial transactions and financial outlets throughout the world. Criminal Investigation has the financial investigators and expertise that is critical to “follow the money trail.”
Examples of Narcotics-Related Financial Investigations
Criminal Investigation's contribution to the war on narcotics is vital but sometimes difficult to recognize, because the work of IRS special agents usually doesn't make the headlines. The long hours of tracking down and documenting financial leads allows an investigation to go right to the door of the leader of the narcotics organization, which contributes to the disrupting and dismantling the country's major drug and money laundering organizations.
Examples of Nonfiler Investigations
There have always been individuals who, for a variety of reasons, argue taxes are voluntary or illegal. The courts of repeatedly rejected their arguments as frivolous and routinely impose financial penalties for raising such frivolous arguments. Take the time to learn the truth about frivolous tax arguments.
Examples of Public Corruption Investigations
Public corruption investigations encompass a wide variety of criminal offenses including bribery, extortion, embezzlement, illegal kickbacks, entitlement and subsidy fraud, bank fraud, tax fraud, and money laundering. Criminal Investigation concentrates its resources on the tax and money laundering aspects of these investigations in cooperation with other federal, state, and local law enforcement agencies. The expertise used in investigations has established our reputation as one of the leaders in the fight against corrupt public officials.
Examples of Questionable Refund Investigations
Questionable Refund Program (QRP) is a nationwide, multifunctional program designed to identify fraudulent returns, to stop the payment of fraudulent refunds and to refer identified fraudulent refund schemes to be investigated and prosecuted criminally.
Examples of Telemarketing Fraud Investigations
The typical illegal telemarketer operates by exploiting the trust of consumers to whom they present an opportunity "too good to be true." These opportunities include cash, vehicles, vacations, jewelry, investments, donations to charity, participation in lotteries, or the opportunity to recoup losses from prior schemes. These "opportunities" are, in fact, "too good to be true."
Program and Emphasis Areas for Criminal Investigation
Criminal Investigation has categorized their investigative cases into specific program and emphasis areas or fraud. Examples of case summaries written from public record documents where cases were prosecuted can be viewed on the various program and emphasis area web pages. Even though we have links to examples of fraud investigation by program and emphasis area imbedded in that area above, we also have pulled an alphabetical listing of just the examples and placed here for your convenience.
Tax Scams - How to Recognize and Avoid Them
To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these “too good to be true” tax scams.
Criminal Investigation (CI) Home Page
How to Report Suspected Tax Fraud Activities
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