IRS Criminal Investigation pledges continued commitment to investigating COVID-19 crimes; encourages taxpayers to report fraud

[April 08, 2021] 

The Internal Revenue Service’s Criminal Investigation Division (IRS-CI) marks the one-year anniversary of the Coronavirus Aid, Relief and Economic Security (CARES) Act by pledging its continued commitment to investigating COVID-19 financial crimes and urging taxpayers to report suspected fraud.

Over the last year, IRS-CI has been combatting COVID-19 fraud related to the Economic Impact Payments, Paycheck Protection Program (PPP) and Employee Retention Credit. The agency has investigated more than 350 tax and money laundering cases nationwide totaling $440 million. These investigations covered a broad range of criminal activity, including fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses.

“Those who are exploiting the CARES Act for their personal financial gain, along with others who assist them, are being investigated and could face criminal prosecution and lengthy prison sentences,” stated Acting Special Agent in Charge Tamera Cantu of the IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation has committed our resources and provides our financial expertise to pursue COVID-19 fraud of all kinds, including those exploiting the Paycheck Protection Program as well as those suspected of stealing Economic Impact Payments meant to help Americans who are in desperate need.”

“Abuse of the CARES Act for fraudulent gain is simply unacceptable,” stated Acting U.S. Attorney Doug Quivey, Central District of Illinois. “The CARES Act is intended to help hard-working Americans financially survive the pandemic. With the assistance of IRS Criminal Investigation agents and other federal, state, and local law enforcement partners, we will do everything in our power to prosecute those who abuse the system.”

While abuses of the various CARES Act assistance programs have been limited in the overall administration of the law, some unscrupulous businesses and individuals have sought to enrich themselves through fraudulent activity. IRS-CI encourages the public to share information regarding known or suspected fraud attempts against any of the programs offered through the Cares Act.

To report a suspected crime, taxpayers may visit IRS.gov or contact the Chicago Field Office at [e-mail].

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020, to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. In April 2020, Congress authorized over $300 billion in additional funding, and in December 2020, another $284 billion.

The Paycheck Protection Program allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.

[Genevieve V. Billia, MPS
Public Affairs Officer
IRS Criminal Investigation
Chicago Field Office]