Anniversaries are normally a time for celebrating. March 25, 2024, was the four-year anniversary that the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, a $2 trillion package of emergency assistance in response to the economic fallout of the COVID-19 pandemic in the United States. But don’t put on the party hats yet. Because what the IRS has found out is that not even the worst health crisis any of us have ever faced so far in our lifetime could stop fraudsters from trying to financially take advantage of other people.
Over the last four years, the IRS Criminal Investigation unit has investigated over 1,644 tax and money laundering cases related to COVID assistance fraud. These cases encompass a wide range of criminal activity, including fraudulently obtained loans, tax credits, and payments meant for American workers, families, and small businesses. All offered under the CARES Act to combat the economic effects of the coronavirus. According to the statistics released on March 28, 2024, by the IRS, these cases totaled $8.9 billion in potentially fraudulent funds. And the IRS is only gaining momentum with its investigations.
The Internal Revenue Service Criminal Investigation Division is using every tool they have to hold these fraudsters accountable. As of Feb. 29, 2024, 795 people have been indicted for their alleged COVID-related crimes. 373 individuals have been sentenced to an average of thirty-four months in federal prison. And the Attorney General’s Office is very good at doing their job. During the last four years, IRS-CI has obtained a 98.5% conviction rate in prosecuted COVID funding fraud cases.
Should out to the Internal Revenue Service these COVID-19 investigations. Hopefully we can celebrate the fifth year anniversary of the CARES Act.
Today’s Fraud of the Day is based on article “IRS Criminal Investigation releases updated COVID fraud statistics on 4th anniversary of CARES Act; nearly $9 billion investigated” published by IRS News on March 28, 2024.
Four years after the enactment of a key pandemic-era law, the Internal Revenue Service released updated numbers showing Criminal Investigation (CI) has investigated 1,644 tax and money laundering cases related to COVID fraud potentially totaling $8.9 billion, with well over half that amount coming from cases opened in the last year.
These cases include a wide range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families and small businesses under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
