Federal Tax Crimes: TIGTA Report on Criminal Restitution Assessment Procedures (June 17, 2021)

Jack Townsend, in his Federal Tax Crimes Blog, discusses TIGTA’s report titled “Criminal Restitution Assessment Procedures Need Improvement” (TIGTA Report No. 2021-30-033 6/7/21).

The Report Highlights are:

Why TIGTA Did This Audit

The Firearms Excise Tax Improvement Act of 2010 authorized the IRS to assess criminal restitution ordered after August 16, 2010, so that the IRS could collect the amount as if it were a tax. Prior to this change in the law, the IRS accepted payments of restitution but could not assess the amount of restitution ordered or use its administrative collection tools to collect the restitution. Only the Department of Justice could collect the amount of restitution.

This audit was initiated to determine if defendants convicted of tax-related crimes are held responsible for the payments of the associated taxes.

Impact on Taxpayers

The ultimate goal of every criminal prosecution is not merely to obtain a conviction but also to obtain a sentence sufficient to discourage similar criminal violations by other taxpayers. It is important that the IRS have effective procedures to ensure that the defendants are held responsible for their crimes and the maximum amount of criminal restitution is collected.

To see the full article, click: “TIGTA Report on Criminal Restitution Assessment Procedures.”

To download the full report, click “Criminal Restitution Assessment Procedures Need Improvement.”

Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.

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