IRS educates public, warns potential criminals during tax season

IRS warns tax fraudsters, potential victims

With tax season underway, the IRS and federal officials have a warning for potential tax fraud criminals, and their potential victims.

AUSTIN, Texas - Federal law enforcement officials gathered at the J.J. Pickle Federal Building in Austin on Thursday to educate the public and warn potential white-collar criminals.

IRS Criminal Investigation’s (CI) Houston and Dallas field offices combine to investigate financial crimes across Texas and work with the assistant U.S. Attorneys from the Western, Northern, Southern and Eastern Districts of Texas to prosecute them.

"It is our hope to send the message across this state that tax fraud will not be tolerated," said U.S. Attorney Jaime Esparza of the Western District of Texas.

In 2023, investigations conducted by the CI’s Houston Field Office led to 96 people being sentenced and collectively ordered to pay over $22 million in restitution in addition to prison time.

What you need to know before filing taxes

A new tax season is bringing fresh changes. Perhaps the most notable change is that qualifying taxpayers can now file directly with the IRS.

"No one wants to be caught up in a federal tax investigation, and we actively work them every day," said U.S. Attorney Leigha Simonton of the Northern District of Texas.

CI has also seen taxpayers misuse the Employee Retention Credit, a refundable tax credit meant to support eligible businesses and organizations that had employees during the COVID-19 pandemic.

MORE: Tax season is here: What you need to know before filing

"A large number of taxpayers claimed the credits of entities that did not exist or did not have employees during the COVID-19 pandemic," said Special Agent in Charge Christopher J. Altemus Jr. of CI’s Dallas Field Office. We want every American to take advantage of the programs, deductions and credits to which they are entitled to by law. However, no one is entitled to defraud the government, and protecting the taxpayer's money is a matter IRS CI takes extremely seriously."

Tips on how to legally avoid paying taxes

Tax season is underway and there is such a thing as tax avoidance. The Money Guy, Brian Preston, has details.

Thursday's messaging was directed at potential criminals, as well as their potential victims.

"Behind the numbers and the statistics, remember that tax crimes affect individuals, families, and businesses striving to make an honest living," said Special Agent in Charge Ramsey Covington of CI’s Houston Field Office.

Watch out for tax preparers who promise higher refunds than other companies or charge a percentage of the refund as compensation. Never sign a blank or incomplete tax return.

For more consumer tips, click here.