Tax Preparation Classes: IRS Recovers Billions in Tax, Financial Crimes Linked to Drug Trafficking & Terrorist Financing

The Internal Revenue Service (IRS) has announced impressive results in its latest quarterly update to its Strategic Operating Plan, detailing significant progress in criminal investigations, taxpayer service improvements, and digital modernization efforts. These initiatives have helped safeguard billions in taxpayer dollars and drive forward the agency’s transformation.

$4.7 Billion Recovered in New Initiatives

The IRS has recovered $4.7 billion through new initiatives, including:

• $1.3 billion from high-income, high-wealth individuals who had failed to pay overdue taxes or file returns.

• $2.9 billion related to IRS Criminal Investigation (IRS-CI) efforts, targeting tax and financial crimes such as drug trafficking, cybercrime, and terrorist financing.

• $475 million in proceeds from cases driven by whistleblower information.

  
  

Additionally, the IRS continues to make progress in its efforts to address high-income non-filers, collecting $292 million from over 28,000 individuals who had not filed taxes since 2017. These individuals, who earned $400,000 or more, are now being pursued with more resources, thanks to additional funding provided in recent years.

IRS Commissioner Danny Werfel emphasized that these advancements represent “dramatic progress” and underscore the agency’s commitment to both improving taxpayer services and enforcing tax compliance, especially among the wealthiest Americans.

Fighting Financial Crimes and Terrorist Financing

One of the IRS’s key missions is to investigate tax-related crimes linked to drug trafficking, cybercrime, and terrorist financing. In FY24, IRS-CI identified $9.1 billion in fraud, obtained $1.7 billion in court-ordered restitution, and seized nearly $1.2 billion in criminal assets.

Examples of major investigations include:

• Jason Brown, sentenced to 18 years for trafficking fentanyl and attempting to fund ISIS activities.

• George Pherai-Bogeajis, sentenced to nearly 20 years for distributing methamphetamine and fentanyl, as well as money laundering.

• Christian Grajeda-Varela, sentenced to nearly four years for fentanyl trafficking and laundering drug proceeds through money service businesses.

  
  

Whistleblower Contributions

Whistleblowers continue to play a critical role in the IRS’s efforts, contributing to both criminal and civil cases. In FY24, whistleblower information led to the collection of $474.7 million in proceeds, resulting in $123.5 million in rewards paid to whistleblowers for their assistance.

The IRS’s updates demonstrate a multifaceted approach to combatting tax evasion and financial crime while investing in tools to better serve taxpayers. As the agency evolves, its focus on high-income non-filers, criminal investigations, and digital modernization remains a priority to ensure that everyone pays their fair share.