Failure to comply with filing, reporting, and payment requirements may result in civil penalties or, in some cases, criminal investigation, which may in turn lead to prosecution, fines, and imprisonment. IRS’s Collection function collects Federal taxes that have been reported or assessed but not paid and secures tax returns that have not been filed. IRS’s Criminal Investigation function conducts investigations of alleged criminal violations of the tax code and related financial statutes.
In Fiscal Year (FY) 2018, the IRS collected more than $55.5 billion in unpaid assessments on returns filed with additional tax due, netting more than $40.6 billion after credit transfers.
The IRS assessed close to $29.3 billion in civil penalties. Almost $12.0 billion was assessed in civil penalties on individual and estate and trust income tax returns.
In FY 2018, the IRS initiated 2,886 criminal investigations in three areas—legal source tax crimes, illegal source financial crimes, and narcotics-related financial crimes. The IRS completed 3,051 investigations in these areas.
Contact Joseph P. Wilson at 949-397-2292 or jwilson@wilsontaxlaw.com.
Mr. Wilson represents clients throughout California and the Globe, involving local, state, federal and international civil tax disputes and tax litigation and criminal tax defense. Mr. Wilson is the Managing Shareholder at Wilson Tax Law Group, APLC, former Member of the Executive Committee of the Taxation Section, California Lawyers’ Association, a former IRS Attorney, a former Assistant United States Attorney, and a former Tax Attorney, California Franchise Tax Board.