IRS Criminal Investigation Division
Encyclopedia
Internal Revenue Service, Criminal Investigation (IRS-CI) investigates potential criminal violations of the U.S. Internal Revenue Code
and related financial crimes in a manner intended to foster confidence in the tax system and compliance with the law. While other federal agencies also have investigative jurisdiction for money laundering
and some bank secrecy act violations, the Internal Revenue Service
(IRS) is the only federal agency that can investigate potential criminal violations of the Internal Revenue Code.
Chief, Victor S.O. Song, Criminal Investigation, and Rick Raven, Deputy Chief, Criminal Investigation, oversee a worldwide staff of approximately 4,400 CID employees, including approximately 2,800 special agent
s who investigate and assist in the prosecution of criminal tax, money laundering, and narcotics-related financial crime cases.
In July 2008, the office of the Treasury Department's
Inspector General for Tax Administration reported that the number of federal criminal tax investigations referred by the Internal Revenue Service to the Tax Division
of the Justice Department
is at an eight-year high. According to the report, the fiscal year 2007 ended with 4,600 investigations. The increase is nearly 50 percent from fiscal year 2002 to year 2007. The report also concluded that federal criminal tax convictions increased by 6.7% from fiscal year 2006 to fiscal year 2007. The number of persons convicted in fiscal year 2007 was 2,155.
created the Intelligence Unit to investigate widespread allegations of tax fraud. To establish the Intelligence Unit, six United States Post Office Inspectors were transferred to the Bureau of Internal Revenue to become the first special agents in charge of the organization that would one day become Criminal Investigation. They formed the nucleus that built the Intelligence Unit into an elite group of highly trained, dedicated professionals, who are recognized as the finest financial investigators in the world.
The Intelligence Unit quickly became renowned for the financial investigative skill of its special agents. It attained national prominence in the thirties for the conviction of public enemy number one, Al Capone
, for income tax evasion
, and its role in solving the Lindbergh kidnapping
. From these promising beginnings the Intelligence Unit expanded over the intervening decades, investigating tax evasion by ordinary citizens, prominent businesspersons, government officials, and notorious criminals.
In July 1978, the Intelligence Unit changed its name to Criminal Investigation (CI). Over the years CI’s statutory jurisdiction expanded to include money laundering and currency violations in addition to its traditional role in investigating tax violations. However, Criminal Investigation’s core mission remains unchanged. It continues to fulfill the important role of helping to ensure the integrity and fairness of the United States tax system.
Since CI’s inception in 1919 to the present, the conviction rate for Federal tax prosecutions has never fallen below 90 percent. This is a record of success that is unmatched in Federal law enforcement.
Internal Revenue Code
The Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...
and related financial crimes in a manner intended to foster confidence in the tax system and compliance with the law. While other federal agencies also have investigative jurisdiction for money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and some bank secrecy act violations, the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
(IRS) is the only federal agency that can investigate potential criminal violations of the Internal Revenue Code.
Chief, Victor S.O. Song, Criminal Investigation, and Rick Raven, Deputy Chief, Criminal Investigation, oversee a worldwide staff of approximately 4,400 CID employees, including approximately 2,800 special agent
Special agent
Special agent is usually the title for a detective or investigator for a state, county, municipal, federal or tribal government. An agent is a worker for any federal agency, and a secret agent is one who works for an intelligence agency....
s who investigate and assist in the prosecution of criminal tax, money laundering, and narcotics-related financial crime cases.
In July 2008, the office of the Treasury Department's
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
Inspector General for Tax Administration reported that the number of federal criminal tax investigations referred by the Internal Revenue Service to the Tax Division
United States Department of Justice Tax Division
The United States Department of Justice Tax Division is responsible for the prosecution of both civil and criminal cases arising under the Internal Revenue Code and other tax laws of the United States...
of the Justice Department
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
is at an eight-year high. According to the report, the fiscal year 2007 ended with 4,600 investigations. The increase is nearly 50 percent from fiscal year 2002 to year 2007. The report also concluded that federal criminal tax convictions increased by 6.7% from fiscal year 2006 to fiscal year 2007. The number of persons convicted in fiscal year 2007 was 2,155.
History
On July 1, 1919, the Commissioner of Internal RevenueCommissioner of Internal Revenue
The Commissioner of Internal Revenue is the head of the Internal Revenue Service , a bureau within the United States Department of the Treasury.The office of Commissioner was created by Congress by the Revenue Act of 1862...
created the Intelligence Unit to investigate widespread allegations of tax fraud. To establish the Intelligence Unit, six United States Post Office Inspectors were transferred to the Bureau of Internal Revenue to become the first special agents in charge of the organization that would one day become Criminal Investigation. They formed the nucleus that built the Intelligence Unit into an elite group of highly trained, dedicated professionals, who are recognized as the finest financial investigators in the world.
The Intelligence Unit quickly became renowned for the financial investigative skill of its special agents. It attained national prominence in the thirties for the conviction of public enemy number one, Al Capone
Al Capone
Alphonse Gabriel "Al" Capone was an American gangster who led a Prohibition-era crime syndicate. The Chicago Outfit, which subsequently became known as the "Capones", was dedicated to smuggling and bootlegging liquor, and other illegal activities such as prostitution, in Chicago from the early...
, for income tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
, and its role in solving the Lindbergh kidnapping
Lindbergh kidnapping
The kidnapping of Charles Augustus Lindbergh, Jr., was the abduction of the son of aviator Charles Lindbergh and Anne Morrow Lindbergh. The toddler, 18 months old at the time, was abducted from his family home in East Amwell, New Jersey, near the town of Hopewell, New Jersey, on the evening of...
. From these promising beginnings the Intelligence Unit expanded over the intervening decades, investigating tax evasion by ordinary citizens, prominent businesspersons, government officials, and notorious criminals.
In July 1978, the Intelligence Unit changed its name to Criminal Investigation (CI). Over the years CI’s statutory jurisdiction expanded to include money laundering and currency violations in addition to its traditional role in investigating tax violations. However, Criminal Investigation’s core mission remains unchanged. It continues to fulfill the important role of helping to ensure the integrity and fairness of the United States tax system.
Since CI’s inception in 1919 to the present, the conviction rate for Federal tax prosecutions has never fallen below 90 percent. This is a record of success that is unmatched in Federal law enforcement.
Strategic Priorities
The Criminal Investigation strategic plan is composed of three interdependent programs: Legal Source Tax Crimes; Illegal Source Financial Crimes; and Narcotics Related Financial Crimes. These three programs are mutually supportive, and encourage utilization of all statutes within CI’s jurisdiction, the grand jury process, and enforcement techniques to combat tax, money laundering and currency crime violations. Criminal Investigation must investigate and assist in the prosecution of those significant financial investigations that will generate the maximum deterrent effect, enhance voluntary compliance, and promote public confidence in the tax system.See also
- Bureau of Alcohol, Tobacco, Firearms and ExplosivesBureau of Alcohol, Tobacco, Firearms and ExplosivesThe Bureau of Alcohol, Tobacco, Firearms and Explosives is a federal law enforcement organization within the United States Department of Justice...
- List of United States federal law enforcement agencies
- Federal crimeFederal crimeIn the United States, a federal crime or federal offense is a crime that is made illegal by U.S. federal legislation. In the United States, criminal law and prosecution happen at both the federal and the state levels; thus a “federal crime” is one that is prosecuted under federal criminal law, and...
- Tax evasionTax avoidance and tax evasionTax noncompliance describes a range of activities that are unfavorable to a state's tax system. These include tax avoidance, which refers to reducing taxes by legal means, and tax evasion which refers to the criminal non-payment of tax liabilities....
- White Collar Crime