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IRS Criminal Investigation releases FY23 Annual Report

By
IRS Criminal Investigation, Press Release

In fiscal year 2023 (FY23), IRS Criminal Investigation (CI) initiated more than 2,676 criminal investigations, identified over $37.1 billion from tax and financial crimes and obtained an 88.4-percent conviction rate on cases accepted for prosecution.

The CI FY23 Annual Report, released Monday, details these statistics, as well as important partnerships and significant criminal enforcement actions from the past fiscal year, which began Oct. 1, 2022 and ended Sept. 30, 2023.
 
“IRS Criminal Investigation plays a vital role for tax administration and law enforcement, and the results from the past year dramatically illustrate the results,” said IRS Commissioner Danny Werfel. “Criminal Investigation’s work has identified tens of billions of dollars on issues including tax fraud, money laundering and cybercrimes. The work of Criminal Investigation employees – who often put themselves in harm’s way to get the job done – continues to make a difference in helping uphold tax laws and protect taxpayers.”
 
CI is the only federal law enforcement agency that spends 100 percent of its time on financial investigations. The agency uses data analytics to identify and investigate some of the most complex financial crimes. During FY23, CI investigators queried Bank Secrecy Act (BSA) data in over 89.6 percent of their investigations, and 14 percent of CI’s investigations were initiated based on BSA information. CI also utilized data analytics to support over 1,300 questionable refund and return preparer investigations, 231 of which included identity theft, in FY23. Additionally, CI’s team seized over 1.7 petabytes of digital data from over 3,300 computer devices in support of investigations during the fiscal year.
 
In FY23, CI saw significant wins from partnerships both within and outside the U.S. In July 2023, a CI investigation, with assistance from the Joint Chiefs of Global Tax Enforcement, led to the indictment and arrest of an international tax advisor accused of concealing millions of dollars of income for high income Americans.

CI’s participation in the Joint Criminal Opioid and Darknet Enforcement (JCODE) Task Force played a major part in the success of Operation SpecTor. This operation netted 288 arrests and the seizure of 117 firearms, 850 kilograms of drugs that included 64 kilograms of fentanyl or fentanyl-laced narcotics and $53.4 million in cash and virtual currencies.
 
Training law enforcement partners on the latest investigative techniques also played a crucial role in combating crime in FY23. CI’s International Training Team delivered 33 trainings to over 1,100 law enforcement officials from 96 countries. In May and September 2023, CI, in conjunction with private-sector and global law enforcement partners, delivered blockchain analysis tools and cyber training to Ukrainian law enforcement agencies to aid in sanctions-related enforcement efforts. The agency rounded out the fiscal year by training a team of investigators from Gulf countries on techniques to identify and combat the flow of money to and within terrorist organizations.
 
The report also includes additional case examples for each U.S. field office, an overview of CI’s international footprint, details about the specialized services provided by CI and investigative statistics, broken down by discipline, for FY23.
 
“This report demonstrates that the work our agency is doing is making a difference in the world of financial crimes,” said Bryant Jackson, Special Agent In Charge, Cincinnati Field Office. “Whether it is committing tax fraud, laundering drug proceeds, COVID-19 relief fraud or other financial crimes, our staff uses their financial expertise to follow the money in order to bring criminals to justice. I could not be prouder to lead our team in Ohio and Kentucky.”
 
CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a nearly 90-percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.