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Treasury Inspector General for Tax Administration

Press Release


August 26, 2010
TIGTA - 2010-46
Contact: Karen Kraushaar
(202) 622-6500
karen.kraushaar@tigta.treas.gov
TIGTA-PAO@tigta.treas.gov

Trends in the Criminal Investigation Division's Enforcement Activities Showed Improvement, TIGTA Found

Washington -- The Internal Revenue Service's (IRS) Criminal Investigation Division (CI Division) showed improvements in meeting most statistical trends for their enforcement activities, including work related to legal source tax crimes, according to a report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).

The CI Division serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes to promote compliance with the tax law. The Division's current strategic plan calls for it to maintain a focus on legal source tax investigations, to combat corporate fraud and terrorism, and to reduce the number of days to complete an investigation, among other priorities. Legal source tax investigations involve taxpayers in legal industries and occupations who earn their income legally but choose to evade taxes by violating the law.

"Our report found that the IRS's Criminal Investigation Division is generally reaching its objectives," said J. Russell George, the Treasury Inspector General for Tax Administration. "The statistics validate that legal source tax and tax-related investigations are a top priority for the CI Division."

TIGTA's report found that the CI Division demonstrated its commitment to pursuing legal-source tax and tax-related investigations as its top investigative priority. The CI Division achieved its Fiscal Year 2009 goal, spending 52.4 percent of its time on legal source tax work and 72 percent on total tax investigations, a 10-year high for both areas.

TIGTA made no recommendations in the report, but IRS officials were provided an opportunity to review the draft report, and made no comments.

To view the report, including the scope, methodology, and full IRS response, go to: http://www.treas.gov/tigta/auditreports/2010reports/201030074fr.pdf.

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