IRS Criminal Investigation Division Announces New Priorities

Carlos F. Ortiz, Bridget M. Briggs, and Jeffrey M. Rosenfeld

At the ABA Section of Taxation’s 2017 May Meeting, Erick Martinez, the IRS Criminal Investigation Division’s Director of Field Operations – Northern Area, provided insight into the Division’s current priorities and strategies. Mr. Martinez indicated that the Division is concentrating on nationally coordinated investigations in conjunction with the Justice Department Tax Division and the IRS Large Business and International Division, such as cases involving renewable fuel credits.

The Criminal Investigation Division is also increasing its focus on data-driven cases such as beneficial owner cases, given the plethora of information resulting from the Swiss bank program and offshore voluntary disclosure programs. Mr. Martinez further noted an increased emphasis on cybercrime with two new cybercrime units in Los Angeles and Washington investigating failure to report income earned through the use of technology.

IRS Announces Plans to Move Forward with Passport Revocation Program

Jed M. Silversmith and Jeffrey M. Rosenfeld

U.S. citizens who owe more than $50,000 in unpaid federal taxes are at substantial risk of having their U.S. passports revoked within the next few months. In December 2015, Congress enacted legislation requiring the IRS to provide a list of names to the State Department of individuals with “seriously delinquent tax debt.”¹ That term was defined in the statute to mean tax debt of over $50,000, including interest and penalties.  26 U.S.C. § 7345(b). The legislation also requires that the State Department refuse to issue new passports and gives the State Department discretion to revoke currently issued passports. See 22 U.S.C. § 2714A. Continue reading