The Results of Internal Revenue Service Enforcement in 2019


         Much has been made about the Internal Revenue Service (IRS) and its efforts to increase enforcement of tax law, especially after the passing of the Tax Cuts and Jobs Act (TCJA). According to a report released in December 2019, the results of these changes have been significant. This is because the IRS has now adopted an aggressive strategy to combat tax fraud.

          You may have heard of the over 10,000 letters that were sent to individuals who had not properly documented their digital currency transactions. Many of those cases will be recommended for criminal prosecution. It is the view of the IRS that this is the new frontier for tax evasion, and they want to stop these crimes as soon as possible. In 2019, the IRS had a 91% conviction rate. It identified $1.8 billion in tax fraud. Prison sentences averaged over 3 years. With all this success, the IRS only sees room for improvement. They are increasing their global reach by means of cooperation with different tax officials in various countries and posting IRS agents all over the world. It simply makes much more sense to pay your tax obligations and not have to worry about what might happen later.

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