IRS CI’s Crackdown on COVID-Related Fraud

The IRS Criminal Investigation (CI) division has probed 1,644 cases involving tax and money laundering linked to COVID-related fraud, estimated at a value of $8.9 billion. Achieving a conviction rate of 98.5%, the IRS has brought charges against nearly 800 individuals, resulting in 373 convictions with an average prison sentence of 34 months. Moreover, the IRS remains vigilant, initiating new investigations into COVID fraud totaling $5 billion potential fraud in the past year alone.

CI chief Guy Ficco underscores the agency's dedication to pursuing perpetrators who exploited government loan programs. IRS Commissioner Danny Werfel commends the CI's efforts in safeguarding against fraud and upholding fairness within the tax system. The CI unit encourages individuals with knowledge about COVID-related fraud to reach out to their local CI field office.

If you are interested in reading more, click here for CPA Practice Advisor’s article.