IRS Criminal Investigation Unit Reports 90% Conviction Rate, $9.15 Billion in Financial Recoveries

The IRS Criminal Investigation (IRS-CI) unit has reported a 90% conviction rate over the past year, highlighting its efforts in combating tax and financial crimes. According to the organization’s annual report, IRS-CI secured 1,571 convictions and uncovered $2.12 billion in tax fraud, along with $7.03 billion from other financial crimes.

IRS-CI Chief Guy Ficco described the year as “one for the history books,” pointing to increased staffing levels and key achievements in areas such as syndicated conservation easement prosecutions and cryptocurrency-related cases.

The unit’s workforce grew by over 10%, bringing the total number of employees to 3,474, including 2,290 special agents—the highest number in nearly a decade. However, this figure remains below the 2010 peak of over 4,000 employees, a shortfall reflecting years of budget cuts.

Among the year’s notable successes, IRS-CI highlighted the sentencing of individuals involved in syndicated conservation easement schemes, which caused $450 million in losses to the U.S. Treasury. Two key perpetrators—a certified public accountant and an attorney—received prison sentences of 25 and 23 years, respectively, for fraudulently inflating land values to generate illegitimate tax deductions.

The report also underscored the first indictment based solely on underreporting cryptocurrency gains. In this case, a man was charged for failing to disclose over $4 million from Bitcoin sales, with the proceeds allegedly used to purchase a residence.

IRS-CI emphasized its reliance on cutting-edge technology, including machine learning and digital forensics, in conducting complex investigations. These tools played a pivotal role in the case against Binance, a leading cryptocurrency exchange. Binance’s CEO pleaded guilty to violations of the Bank Secrecy Act, and the company agreed to pay over $4 billion for failing to prevent illicit transactions involving sanctioned jurisdictions and terrorist organizations.

“We are committed to leveraging technology to protect the U.S. tax system,” said Ficco, highlighting the importance of advanced tools in tackling financial crimes and maintaining the integrity of the tax code.

By fLEXI tEAM