The IRS released its Criminal Investigation Annual Report for fiscal year 2013 on Monday, February 24. The fiscal year ended September 30, 2013, so the report covers the fourth quarter of 2012 and the first three quarters of 2013. The report shows increases in enforcement actions and convictions for tax crimes. IRS Criminal Investigation continues its focus on identity theft crimes, recommending prosecution of over 1,250 individuals who were involved in identity theft crimes in fiscal year 2013.
As of September 30, 2013, the IRS was able to report the following:
- IRS Criminal Investigation initiated 5,314 cases and recommended 4,364 cases for prosecution.
- A 12.5% increase in investigations initiated compared to the 2012 fiscal year.
- An 18% increase in prosecution recommendations compared to the 2012 fiscal year.
- The conviction rate for fiscal year 2013 was 93%.
- Total convictions increased by over 25% from fiscal year 2012 to fiscal year 2013.
- 80% of convictions in fiscal year 2013 resulted in confinement to federal prison, halfway house, home detention, or some combination thereof.
- IRS Criminal Investigation seized over $465 million in assets in fiscal year 2013.
- Taxpayers forfeited over $517 million in assets in fiscal year 2013.
Notably, despite the controversy over regulation of return preparers, only 309 investigations of return preparers were initiated in fiscal year 2013, down from 443 in fiscal year 2012.
Here is the full report.