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Internal Revenue Service Criminal Investigation (Accountants with Guns)

Internal Revenue Service Criminal Investigation (Accountants with Guns). Andrew T. Hromoko, Jr. Special Agent Public Information Officer. OBJECTIVE. Internal Revenue Service Criminal Investigation Types of Investigations Investigative Tools Scams and Schemes Questions. Our Mission.

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Internal Revenue Service Criminal Investigation (Accountants with Guns)

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  1. Internal Revenue ServiceCriminal Investigation(Accountants with Guns) Andrew T. Hromoko, Jr. Special Agent Public Information Officer

  2. OBJECTIVE • Internal Revenue Service • Criminal Investigation • Types of Investigations • Investigative Tools • Scams and Schemes • Questions

  3. Our Mission In support of the overall IRS Mission, Criminal Investigation serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.

  4. Civil vs. Criminal • Tax System • Voluntary Compliance • Self Assessment • Income/Employment/Excise • Civil • Notices/Audits • Expectation of proof on the Taxpayer • Additional tax, interest and penalties • Criminal • Willfulness and Intent • Expectation of proof on the government • Criminal Sanctions

  5. Our Special Agents • Federal Law Enforcement Officers with Accounting Expertise • Must Complete Training at the Federal Law Enforcement Training Center (FLETC) • 9 weeks of basic techniques training • 16 weeks of specialized training for financial investigation

  6. Investigative Techniques • Subpoenas and Summons • Search Warrants • Surveillance • Undercover operations • Interviewing • Analyzing Records • Following the paper/computer/money trail

  7. Legal Source Tax Crimes • Income derived from legal sources • Unreported Income/False Deductions • Foreign and Domestic Trusts • Return Preparer Fraud and Questionable Refunds • Non-Filers and Frivolous Filers

  8. Illegal Source Financial Crimes • All Income Subject to tax • Individual commits other crimes • Money Laundering • IRS working with other agencies • Federal Bureau of Investigation • Postal Inspection Service • Drug Enforcement Administration • Other Federal and State

  9. Illegal Source Financial Crimes • Examples-All Taxable Income • Embezzlement • Stealing from a company or corporation • Political Corruption • Bribing Government Officials • Gambling • Organized Crime • Money Laundering

  10. Narcotics-Related Financial Crimes • Target the profit and financial gain of drug traffickers and money launderers • Asset Forfeiture

  11. Scams and Schemes • Tax Return Identity Theft • Return Preparer Fraud • Employment Tax Evasion • Abusive Tax Schemes • Frivolous Arguments

  12. Tax Return Identity Theft • Tax Return Filed with your SSN • Early in filing season • Refunds on Debit Type Cards • Prevention • Detection • Victims Assistance • Enforcement • Arrest in January

  13. Identity Protection Specialized Unit • Toll free – 800-908-4490 • IRS identity theft affidavit • (Form 14039) • Pittsburgh Tip Line: 412-395-4973

  14. Tax Return Identity Theft • Email Scams • Additional Refund/IRS is trying to contact you • IRS never sends an unsolicited email • Confirm by calling 1-800-829-1040 • Erie Scam • Economic Stimulus • Home made flyers/churches

  15. Return Preparer Fraud • Two guilty pleas/one sent to jail • Inflated/False Deductions • Filing Status Change • Client Involvement and Knowledge • Criminal and Civil Sanctions • Office of Professional Responsibility

  16. Employment Tax Evasion • Employee vs. Independent Contractor • Can harm future benefits • Social Security, Medicare, Unemployment • Courts taking very seriously • One case 40 months in prison • Not a victimless crime

  17. Abusive Tax/Frivolous Arguments • Use of Trusts to reduce/eliminate tax • Offshore bank accounts • Outlandish Claims • Severe Civil and Criminal Sanctions • “If it sounds too good to be true……”

  18. Conclusion • Questions • andrew.hromoko@ci.irs.gov • 412-395-6771 • www.irs.gov

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