Irs Agents Keep Busy Looking For Tax Fraud Agency Also Investigates Laundering Of Drug Money

Five to six times each week, someone reports possible illegal financial activity to the Idaho office of Internal Revenue Service Criminal Investigation Division.

Rick Raven is more than willing to listen. Callers include suspected violators’ acquaintances, former business partners, spouses.

“If people are aware of anybody committing fraud, they can contact us and we will look into it,” he told the Idaho Business Review.

Raven is group manager for IRS criminal investigation in Idaho. He supervises 14 special agents, 10 in Boise and two each in Coeur d’Alene and Idaho Falls.

Reducing the tax gap, the amount of taxes owed compared with those actually collected, is the goal.

“Right now, one-sixth of total taxes owed are not being paid,” Raven said. “Nationally, there is approximately $127 billion not being collected.”

For every $1 spent on tax enforcement, the IRS gets $5 back.

The Criminal Investigation Division “is there to go after those who don’t pay their fair share. The only thing worse than paying taxes is finding out someone else is not paying his fair share,” Raven said.

The agency focuses on investigations that will produce the most impact and do the most to convince people to comply with tax laws.

His criminal investigation agency looks into cases in which the defendant, target or taxpayer intentionally violates tax laws. The civil section works on errors and unintentional mistakes.

The agency conducts both fraud and narcotics investigations. Agents look mainly into money laundering associated with drug dealing.

“Idaho and particularly the Sun Valley area are somewhat of a haven for narcotics and money launderers,” Raven said. “Compared with Los Angeles and New York, it’s not significant, but it is a significant (criminal investigation) program for Idaho’s population, … more so than people think.”

In the last year, Raven has sent agents to Switzerland and Hong Kong. Both trips resulted in the seizure of bank accounts.

“Both involved narcotics proceeds being diverted to a number of bank accounts in ‘shell’ companies,” he said.