It is a crime to cheat on your taxes, but few among us think about how well the IRS’s criminal law enforcement functions. In fact, it is an agency that has an unprecedented 90 percent criminal conviction rate. On February 3, 2010, Mark Cohen, an adjunct professor at The John Marshall Law School and an attorney for the Federal Law Enforcement Officers Association, presented “New Developments in Criminal Tax Fraud,” as part of the Center’s Tax Law Lunch & Learn Series. In his presentation, Cohen traced the origin of the IRS’s law enforcement function back to 1919, and highlighted current topics and issues facing the agency.
“Capone was convicted for federal income tax evasion, not for his alleged racketeering activities.”
Mark Cohen, attorney for the Federal Law Enforcement Officers Association, speaks about “New Developments in Criminal Tax Fraud.”
Initially, the IRS Criminal Division—then called the Intelligence Unit—addressed fraud and corruption within the IRS. In the mid-to-late 1920s, the department’s mission changed to one of criminal law enforcement during Prohibition when it was illegal to manufacture, transport, import, and export alcoholic beverages in the United States. For those too young to remember the Prohibition era, Cohen reminded the audience of the 1987 movie The Untouchables, whose main characters included Eliot Nest, a member of the Prohibition Unit within the IRS Intelligence Unit, and Mike Malone, an IRS special agent. Eliot Ness and Mike Malone’s efforts led to the conviction of organized crime boss Al Capone. Cohen reminded the audience that Capone was convicted for federal income tax evasion, not for his alleged racketeering activities.
Cohen indicated that virtually every crime has a profit motive, and the common thread in many crimes is money. The role of the IRS in criminal investigations is to “follow the money trail.” Today, approximately 3,000 IRS criminal investigation special agents have jurisdiction for tax crimes in the U.S. and worldwide.
To get an idea of the department’s current activities, Cohen suggested reading the local newspaper. The IRS Criminal Division is involved in almost every investigation. For example, the department shares enforcement responsibilities with agencies enforcing anti-terror and money laundering activities in Iraq, Afghanistan, and other countries around the world, as long as the source of the illegal activity is subject to the Internal Revenue Code. The department may get involved in various domestic and international cases involving corruption, organized crime, narcotics, and kickbacks on government contracts.
By Kelvin A. Jones MS in Employee Benefits candidate
Cohen suggested that attendees consider a career as an IRS criminal investigation special agent. For law students, and others with 15 semester hours in accounting, nine hours in business-related courses, and an undergraduate degree, becoming a special agent could be an attractive, non-traditional career path. Due to potential physical demands, successful candidates must pass a vision test and physical, and must be 37 years old or less, a requirement that makes sure IRS criminal investigation special agents qualify for their full government pension by the mandatory retirement age of 57. With more and more workers having to delay their retirement due to inadequate savings and the demise of the traditional company pension programs, becoming an IRS criminal investigation special agent may be a way to guarantee having a pension, an early retirement date, and a rewarding career.