Wednesday, March 13, 2013

Criminal Tax Investigations On The Rise!

Here we are in March and as many CPA's can tell you it is Tax Time.  That is right Tax Time. The time of year, when the vast majority of taxpayers are about to file their tax returns. 
It is also the same time of year that the IRS likes to announce the names and details of taxpayers (or more likely Non-Taxpayers), who were recently Criminally Prosecuted by the Goverment for not paying their taxes.  Coincidentally, there also is a noticeable uptick in criminal indictments and in convictions for tax crimes at this time of year.
On Wednesday, March 28,2012 we posted that the "IRS Releases FY 2011 Data Book." This data book, in addition to providing various other interesting information about the IRS, also contains a report of the IRS' Criminal Prosecutions for the 2011 & 2010.

The Data Book reported that in 2011: these

  • The IRS initiated 4,720 criminal investigations.
  • There were 3,410 referrals for prosecution
  • There were 2,350 convictions.
  • Of those sentenced, 81.7% were incarcerated (a term that includes imprisonment, home confinement, electronic monitoring, or a combination thereof).
By way of comparison, in FY 2010:
  •  the IRS initiated 4,706 criminal investigations
  • there were 3,034 referrals for prosecution, and
  • there were 2,184 convictions.
  • Of those sentenced, 81.5% were incarcerated.
More than 80% of criminal tax fraud cases resulted in jail time in 2012, which shows judges are willing to hand out stiffer penalties than probation.

So as you sit down to figure your taxes for 2012 and somehow you are thinking of underreporting your income or not filing at all, ask your self:

Do You Feel Lucky Punk?
Have Criminal Tax Problems?  

Contact the Tax Lawyers at Marini & Associates, P.A.

for a FREE Tax Consultation at: or or
Toll Free at 888-8TaxAid (888 882-9243).

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