How Do Criminal Investigations Get Started?
• Informants. The IRS uses both paid and unpaid informants to develop many tax cases. These informants are often someone angry at the taxpayer, such as former spouses, former employees, neighbors, etc. In fact, the IRS has a specific form (Form 211) that people can file to provide the IRS information about another person. If this is original information previously unknown to the IRS and they collect taxes, the informant is entitled to a reward based on a portion of the taxes the IRS collects. • Revenue Agents. Revenue agents conduct audits. They are trained to turn over cases to CID when they think they have discovered false, fraudulent or criminal activity. • State Tax Authorities. State tax authorities and the IRS often have information sharing agreements and state tax authorities often provide CID information of suspected taxpayer criminal conduct. • Other Law Enforcement Agencies. Many other federal and state law enforcement agencies provide information to CID about suspected crimi
