White-Collar Crime - Tax Fraud

For most Americans, failure to pay the correct amount of taxes to the Internal Revenue Service (IRS) results in agreement to pay off the taxes in some manner. However, when the IRS believes it has found a pattern of deception designed to avoid paying taxes, criminal charges can be brought. In 2003 the Criminal Investigations Division of the IRS initiated 1,814 cases. Of those, the IRS recommended prosecution in 974 cases, and in 770 cases criminal charges were filed or brought by indictment. In 2003 the IRS reported 688 convictions for tax fraud. Of those convicted for tax fraud, 79.8 percent were incarcerated, serving an average of 28 months.