The Robert T. Brockman $2 billion tax fraud scheme (the Feds largest ever tax case) illustrates that IRS uses Data Analytics to Uncover Criminal Arrangements. IRS-Criminal Investigation (IRS-CI) is a federal agency department specifically authorized to investigate and prosecute federal income tax crimes. IRS-CI uses data analytics such as models, algorithms, and the millions of records and evidence that IRS-CI has at hand for identifying areas of tax noncompliance. IRS-CI special agents are trained to uncover tax non-compliance and bring a Taxpayer to the DOJ for prosecution. They are trained to trace cash flows and use data analytics. Some of the information sources for an IRS-CI are:
IRS-CI focuses on:
Individuals and entities making decisions to not comply with the law could face a civil audit or criminal investigation resulting in tax penalties or prosecution and possible jail time
There are offshore tax crimes committed by individuals, corporations, and promoters of abusive schemes. For making a determination of whether tax code non-compliance is unintended, or Willful, the US turns to IRS-CI. This division, in tandem with the US Department of Justice, investigates crimes related to violations of the Internal Revenue Code and other Money Laundering Statutes such as the Bank Secrecy Act (BSA).
The DOJ Brockman’s news release states that: “IRS Criminal Investigation aggressively pursues tax cheats domestically and abroad. No scheme is too complex or sophisticated for our investigators. Those hiding income or assets offshore are encouraged to come forward and voluntarily disclose their holdings.”
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