With the current budget cuts in place, the IRS has curbed some of its criminal investigations.
Most of the agency’s investigative priorities have been affected, including identity theft, international operations and money laundering schemes plus suspicious refunds and problem preparers.
Tax audits are not the only IRS enforcement tool that is on the decline. Criminal investigations are down, according to new agency statistics showing that 4,300 criminal proceedings were initiated in the 2014 fiscal year; about 20% fewer than in 2013.
Most of the agency’s investigative priorities are affected with fewer special agents, it is expected that the number of investigations to fall again this year.