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From the Tax Law Offices of David W. Klasing – The Importance of Bank Secrecy Act Data in IRS Criminal Investigations of Tax Crimes

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The IRS Criminal Investigation (CI) unit is responsible for conducting financial crime investigations, including tax fraud, money laundering, public corruption, and more. There are several methods that they may use to uncover financial crimes. However, the data available to CI through the Banking Secrecy Act (BSA) has proven to be one of their most powerful tools in uncovering instances of tax evasion.
CI relies heavily on BSA data, with nearly 88% of its criminal tax investigations in fiscal year 2023 involving individuals or entities with a BSA filing. BSA data has proven instrumental in allowing CI to execute substantial asset seizures and secure increased convictions. With a federal conviction rate of nearly 90% and a presence across the U.S. and internationally, CI is dedicated to prosecuting tax criminals and maintaining the integrity of the financial system.
If you need help resolving your civil or criminal tax exposure issues, get help from our Dual-Licensed Tax Lawyers & CPAs by calling the Tax Law Offices of David W. Klasing today at (800) 681-1295 or click here to schedule a reduced rate initial consultation.
IRS Criminal Investigation Unit’s Use of BSA Data
IRS CI recently disclosed using Bank Secrecy Act (BSA) data in combating financial crimes, underscoring its effectiveness in investigations. According to CI, in fiscal year 2023, nearly 88% of the investigations initiated by the agency involved individuals or entities with a BSA filing. This highlights the critical role BSA data plays in uncovering financial wrongdoing across various sectors.
Impact on Financial Crime Investigations
From FY21 to FY23, CI reports that BSA data played a pivotal role in securing significant outcomes in financial crime investigations. Notably, it contributed to an average prison sentence of 39 months for convicted individuals and the seizure of $7.4 billion in assets linked to criminal activities. Furthermore, restitution orders totaling $434 million and forfeited assets totaling $629 million were attributed to BSA data, representing substantial increases compared to previous fiscal years.
Diverse Application in Investigations
CI Chief Jim Lee emphasized the versatility of BSA data in uncovering a wide array of financial crimes, including those related to COVID relief programs, skimming schemes, and employment tax fraud. Among investigations originating from BSA data in FY23, approximately 77% relied on information from suspicious activity reports, while 63.6% utilized data from currency transaction reports. Additionally, fraudulent Small Business Association loans tied to COVID relief programs, skimming incidents, and employment tax fraud constituted significant portions of investigations leveraging BSA data.
CI’s Jurisdiction and Achievements
As the law enforcement arm of the IRS, CI holds jurisdiction over a range of financial offenses, including tax fraud, narcotics trafficking, money laundering, and public corruption. Notably, CI boasts a federal conviction rate of nearly 90%, a testament to its effectiveness in prosecuting offenders. With 20 field offices across the United States and 12 attaché posts internationally, CI maintains a robust presence in combating financial crimes both domestically and abroad.
Accordingly, if you are concerned that you may be accused of a tax crime, then you must seek legal support. Our Dual-Licensed Tax Lawyers & CPAs can help assess your case and identify the proper course of action. We will work diligently protect your interests and reduce or eliminate the potential penalties you face.
What is the Banking Secrecy Act?
The BSA is a U.S. federal law enacted in 1970 aimed at combating money laundering and other financial crimes. It requires financial institutions to assist government agencies in detecting and preventing money laundering by maintaining records of cash purchases over $10,000, filing reports of cash transactions exceeding this amount, and filing suspicious activity reports (SARs) for transactions that appear to be connected to illicit activities. The BSA also imposes requirements on financial institutions to verify the identity of customers and maintain effective anti-money laundering programs.
Methods the IRS Criminal Investigation Unit Uses to Uncover Tax Crimes
Ultimately, there are several strategies that the CI may use to uncover tax crimes. For instance, charges may stem from any of the following:
Review of Tax Returns and Documentation
IRS Criminal Investigation meticulously reviews tax returns and supporting documentation to detect discrepancies and irregularities that may indicate tax crimes. By cross-referencing reported income with other financial records and conducting thorough examinations of tax filings, CI can identify inconsistencies or fraudulent activities, laying the groundwork for further investigation and potential prosecution.
Analysis of Offshore Accounts and Complex Financial Structures
CI specializes in scrutinizing offshore accounts and complex financial structures utilized by individuals and entities to conceal income and evade taxes. Through comprehensive analysis of international financial transactions and collaborations with foreign tax authorities, CI can uncover hidden assets and income streams, exposing tax evasion schemes and holding perpetrators accountable for their actions.
Cooperation with Informants and Whistleblowers
CI may collaborate with informants and whistleblowers who provide insider information on tax crimes. These individuals, often with knowledge of fraudulent activities, can assist CI in gathering evidence and identifying key players involved in tax evasion schemes, enhancing the agency’s ability to investigate and prosecute offenders effectively.
Surveillance and Undercover Operations
In certain cases, CI may conduct surveillance and undercover operations to gather evidence of tax crimes. This may involve monitoring suspect individuals or businesses to observe their financial activities and interactions, providing CI with valuable insights into potential tax evasion or fraudulent behavior that can be used in criminal investigations and prosecutions.
Partnerships with Other Law Enforcement Agencies
CI frequently partners with other law enforcement agencies, both domestically and internationally, to uncover and combat tax crimes. By sharing information and resources, CI can leverage the expertise and capabilities of partner agencies to conduct comprehensive investigations, track down tax evaders, and bring them to justice.
Monitoring Social Media Activity
Finally, CI may monitor social media activity to gather intelligence and evidence related to tax crimes. By analyzing publicly available information, including posts, photos, and interactions, CI agents can identify individuals flaunting lavish lifestyles inconsistent with reported income or engaging in activities suggestive of tax evasion. This information can provide valuable leads for further investigations and enforcement actions against tax offenders.
Contact Our Attorneys for Help with Your Tax Issue
If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.

Note:  

As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. 
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.
As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, Kovel CPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth.   See our Testimonials to see what our clients have to say about us!

We Are Here for You
Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
In addition to our fully staffed main office in downtown Irvine California,  the Tax Law Offices of David W. Klasing has unstaffed (conference room only) California based satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad, Sacramento. We also have unstaffed (conference room only) satellite offices in Las Vegas Nevada, Salt Lake City Utah, Phoenix Arizona & Albuquerque New Mexico, Austin Texas, Washington DC, Miami Florida and New York New York that solely handle Federal & California Tax issues.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.  We also now offer a convenient scheduling option, where you can secure David W. Klasing, Esq M.S.-Tax CPA’s undivided attention for a 4-hour consultation at any of his satellite offices.
See our Audit Representation Q and A Library
See our Criminal Tax Law Q and A Library
See our Non-Filer Q and A Library
Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]
SOURCE Tax Law Offices of David W. Klasing, PC
The post From the Tax Law Offices of David W. Klasing – The Importance of Bank Secrecy Act Data in IRS Criminal Investigations of Tax Crimes appeared first on HIPTHER Alerts.

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Trusted Experts Unite: IDVerse and TrustID Fuse Best of Breed Technology with Human Expertise

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IDVerse, a pioneer in generative AI identity solutions, celebrates a significant milestone as TrustID, a proven expert in identity verification and fraud prevention, joins its growing roster of clients. TrustID, leading certified identity service provider (IDSP) and industry veteran, has chosen IDVerse to further progress the capabilities of its human-in-the-loop identity services, setting a new standard in identity validation and security.
The addition of IDVerse’s automated reinforcement learning into TrustID’s services, supported by TrustID’s unique expert human analysts, enhances the accuracy and reliability of the identity verification processes. This collaboration equips TrustID to continue to offer future-proof verification technologies and fraud prevention services. Customers will benefit from enhanced security features, smoother user onboarding, and robust compliance with regulatory standards.
As deepfake attacks rise, with fraudulent entities using manipulated audio or video to impersonate individuals, TrustID and IDVerse are proactively adapting their systems to counter this threat. Recent data from IDVerse reveals that approximately 1 in 4 fraud attempts involve deepfake media, emphasizing the urgency of addressing this issue.
Tony Machin, CEO of TrustID, said: “We are excited to continue our advancement in identity verification automation with IDVerse and leverage their innovative approach to identity technology. We rigorously tested IDVerse with our own known fraudulent document database and through live data tests to ensure our clients receive only the industry’s best. IDVerse performed significantly better in document capture and fraud analysis than other candidates.”
Machin continued: “Together, we will redefine the standards of digital identity verification and fraud prevention, integrating best-of-breed solutions to drive the most robust and straightforward verification, supported by human experts. Incorporating IDVerse reinforces our position at the forefront of the identity verification market and helps us to say ahead of evolving threats, such as deepfake fraud.”
“At IDVerse, we’re committed to providing the essential building blocks for identity businesses, prioritizing both innovation and ethical AI,” stated Matt Adams, CTO and Co-founder of IDVerse.
Adams continued: “By leveraging the best of computer vision and humans, we address algorithmic bias and ensure compliance with regulations like the EU AI Act and the US White House Executive Order on AI. This approach empowers companies like TrustID to navigate the digital landscape responsibly and with confidence, particularly in combating emerging threats such as deepfake media.”
The partnership between IDVerse and TrustID marks a significant advancement in digital identity verification, combining cutting-edge generative AI with human expertise to provide superior security and user experience.
The post Trusted Experts Unite: IDVerse and TrustID Fuse Best of Breed Technology with Human Expertise appeared first on HIPTHER Alerts.

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Ying Yong grants interview to Russian newspaper Izvestia

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On June 20, Ying Yong, Chief Grand Prosecutor and Prosecutor General of the Supreme People’s Procuratorate (SPP) of China, granted an interview to the Russian newspaper Izvestia on the sidelines of the 6th Meeting of the Heads of Prosecution Services of the BRICS Countries in St. Petersburg, Russia.
Question: What are the characteristics of criminal cases in China? How do Chinese prosecution authorities deal with them?
Ying: Since the founding of the People’s Republic of China, the Chinese people have created dual miracles of eye-catching economic development and long-term social stability under the leadership of the Communist Party of China (CPC). Along with the development of the economy and society, criminal cases in China have undergone some changes over the past two decades. There are significant changes in the crime structure. There has been a continuous decrease in the total amount and proportion of serious violent crimes such as murder, robbery and kidnapping, while the number and proportion of minor crimes such as dangerous driving and acts by cybercrime accomplices have significantly increased. China is one of the countries with the lowest rates of homicide, firearms and explosive incidents, and other serious criminal offenses in the world.
China has placed a high priority on the development of the rule of law. Law-based governance is a constitutional principle and a fundamental governance strategy of the country. The 20th CPC National Congress held in October 2022 specifically planned for “adhering to comprehensive rule of law and advancing law-based governance in the country”, clearly proposing “comprehensively building a modern socialist country along the path of the rule of law” and “comprehensively promoting law-based governance in all respects”, and highlighting “accelerating the development of a fair, efficient and authoritative socialist judicial system” and “strengthening the legal supervision work of the prosecution authorities”. Under the leadership of the CPC, Chinese prosecution authorities thoroughly implement Xi Jinping Thought on the Rule of Law, earnestly enforce the Constitution and laws, respect and effectively safeguard human rights. They adhere to the principles of a legally prescribed punishment for a specified crime, presumption of innocence, and no guilt without evidence, and comprehensively and accurately implement a criminal policy combining severity with leniency that upholds the practice of being strict when necessary, lenient when appropriate, and punishing according to the offense. They strictly adhere to the system of leniency for those who confess and repent, actively promote the construction of a system with Chinese characteristics for governing minor crimes, explore the comprehensive use of criminal, administrative, civil and other means to hierarchically punish minor crimes, and resolve social conflicts in a timely manner. They are working to establish a crime governance structure that is well-ordered in severity and with differentiated responsibilities, and promote the modernization of the system and capacity for national governance, effectively safeguarding national security, social stability and the well-being of the people.
Question: The theme of the 6th Meeting of the Heads of Prosecution Services of the BRICS Countries is “Modern digital solutions on enforcement of the law: experience of BRICS prosecution services”. What experiences do China’s prosecution authorities have in using digital technology to support case handling?
Ying: I presented the development in this regard in China at the 6th Meeting of the Heads of Prosecution Services of the BRICS Countries. Digital technology is a revolutionary means of law enforcement and justice that can effectively enhance technological content and efficiency in law enforcement and justice work. Currently, China is striving to promote the building of a Digital China. The Chinese government has unveiled a plan for the overall layout of the country’s digital development, formulated laws such as the Cybersecurity Law, Data Security Law, and Personal Information Protection Law. Additionally, China is actively participating in the formulation of the United Nations treaty on cybercrime. China’s prosecution authorities attach great importance to the application of digital technology in judicial case handling, deeply implement a digital prosecution strategy, formulate a plan for digital prosecution development, promote IT application in the rule of law, and effectively construct a mechanism for digital prosecution work that is “business-led, data-integrated, technology-supported and application-focused” to enable the work of legal supervision to improve quality and efficiency. In the prosecution of financial crimes, money laundering, smuggling and other crimes, new technologies such as big data and artificial intelligence are fully utilized to review massive relevant evidence, conduct in-depth analysis of the flow of funds involved, dig deep into upstream and downstream crime clues, accurately charge crimes, and simultaneously trace and recover proceeds. By using data algorithms and technological means such as three-dimensional measurement and imaging for identification, the ability to recognize deeply forged audiovisual materials is enhanced so that clues for high-tech crimes can be effectively identified. In handling public interest litigation cases, technologies such as satellite remote sensing are fully utilized to compare changes in the ecological environment, discover clues of public interest damage in areas such as water bodies, soil, wetland protection, desertification control, and biodiversity protection, and to assess public interest damage and rectification.
China’s prosecution authorities focus on analyzing the characteristics and patterns of cases in performing their duties, construct legal supervision big data models, screen more illegal and criminal clues, refer them to competent authorities for investigation, and, in conjunction with case handling, issue prosecution recommendations to competent authorities to promote plugging loopholes, strengthening of supervision, recovering of losses, and advancing from individual case handling to category supervision and then to litigation source governance. To date, China’s prosecution authorities have jointly developed more than 6,000 legal supervision big data models, discovered over 620,000 supervision clues in groups, strengthened legal supervision, and effectively achieved systematic governance and litigation source governance.
Question: In recent years, what new achievements have been made in cooperation between Chinese and Russian prosecution authorities? What are your expectations for Sino-Russian prosecutorial cooperation?
Ying: In recent years, under the strategic planning and guidance of President Xi Jinping and Russian President Vladimir Putin, prosecution authorities of both countries have maintained high-standard exchanges and cooperation, achieving fruitful results. Within the frameworks of multilateral mechanisms such as the Meeting of the Heads of Prosecution Services of the BRICS Countries and the Prosecutors General Conference of the Member States of Shanghai Cooperation Organization, the two countries’ prosecution authorities have respected each other, communicated in a friendly manner, effectively strengthened law enforcement and judicial cooperation in combating transnational crimes, terrorist crimes, religious extremist crimes, continuously deepened exchanges and cooperation between border region prosecution authorities, and jointly provided strong judicial support for the development and stability of both countries and the region.
Since last year, I have had three friendly, in-depth, and fruitful meetings with His Excellency Russia’s Prosecutor General Igor Krasnov. We have established a good working relationship and deep friendship. Last year, the SPP and the Prosecutor General’s Office of Russia jointly signed a plan for bilateral cooperation for 2023 to 2024, cooperation agreements in the fields of education, research and specific agreements on local prosecution cooperation. Both sides are actively implementing these cooperation agreements, and more pragmatic exchanges and cooperation are steadily advancing. In September and November last year, prosecutors of both countries were sent to each other’s countries for study and visits, from which both sides greatly benefited.
This year marks the 75th anniversary of the establishment of diplomatic relations between China and Russia. In May of this year, after President Putin was re-elected as Russian President, he chose China as the first foreign country to visit during his new term, embarking on a visit to China immediately after taking office as president. President Xi and President Putin met in Beijing, jointly signed and issued a joint statement on deepening the China–Russia comprehensive strategic partnership of cooperation for the new era, charting a blueprint for the development of China–Russia relations in the future at a new historical starting point. The SPP is willing to work with the Prosecutor General’s Office of Russia to further deepen friendly exchanges and pragmatic cooperation between the two countries’ prosecution authorities under the strategic guidance of the two countries’ leaders, and continuously enrich the connotation of China–Russia relations in the new era so as to better benefit both countries and their peoples.
Question: How do you feel about participating in this year’s Meeting of the Heads of Prosecution Services of the BRICS Countries?
Ying: This year’s Meeting of the Heads of Prosecution Services of the BRICS Countries was held in St. Petersburg, and the Russian side made elaborate preparations and thoughtful arrangements for this meeting, making me and my colleagues feel warmly welcomed. During the meeting, prosecutors general from participating countries shared their countries’ concepts, experiences and practices regarding the theme of the meeting, fully consolidating a broad consensus on joining hands to embrace the wave of digital transformation, and demonstrating a broad prospects for exchanges and cooperation in the digital field among prosecution authorities of various countries.
This year’s Meeting of the Heads of Prosecution Services of the BRICS Countries was the first meeting after the successful expansion of the BRICS, with countries such as Iran, Egypt, the United Arab Emirates, and Ethiopia joining the meeting. This fully demonstrates the vitality and vigor of this meeting mechanism and further expands its influence in the international judicial field. China’s prosecution authorities warmly welcomed the new members and also expressed gratitude to the Russian side for its important contributions to the deepening development of this mechanism. We look forward to working with prosecution authorities of BRICS countries, including the Russian side, to uphold the spirit of openness, inclusiveness, cooperation and mutual benefit, seize opportunities and meet upcoming trends, better utilize the power of the rule of law to serve the modernization processes of various countries, and jointly safeguard the interests of all countries and their peoples.
The post Ying Yong grants interview to Russian newspaper Izvestia appeared first on HIPTHER Alerts.

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Bytes Of Healing: Digital Innovation Meets Patient-Centric Care Through AI/ML

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In the rapidly evolving healthcare landscape, digital innovation driven by Artificial Intelligence (AI) and Machine Learning (ML) is transforming patient care, ushering in a new era of personalized and effective treatment strategies.
Leading this charge is Swapna Nadakuditi, a seasoned expert renowned for her pioneering work at the intersection of data analytics and healthcare.
Swapna Nadakuditi has achieved significant milestones in her career, particularly through her leadership in the Bytes of Healing initiative. Over the past five years, her contributions have been crucial in leveraging AI/ML technologies to enhance patient-centric care. She specializes in utilizing extensive datasets—from medical records to demographic information—to develop predictive models that identify individuals at heightened health risks, such as COPD, diabetes, and CKD. This data-driven approach not only facilitates early disease detection but also enables tailored healthcare solutions that improve patient outcomes.
One of Swapna’s major achievements includes successfully implementing Natural Language Processing (NLP) techniques to extract diagnosis codes from unstructured medical records. This innovation has streamlined clinical documentation processes and enhanced the accuracy of predictive analytics, optimizing healthcare delivery.
In addition to her technical accomplishments, Swapna Nadakuditi has navigated significant challenges inherent in AI/ML integration within healthcare. These challenges include ensuring data privacy compliance, scaling AI solutions using distributed computing frameworks, and fostering interdisciplinary collaboration across data science and healthcare domains. Her proactive approach to overcoming these obstacles underscores her commitment to advancing healthcare through technological innovation.
Swapna’s work has yielded measurable outcomes, including improved risk scoring accuracy, leading to enhanced revenue from risk adjustment and minimized coding errors in healthcare billing. Furthermore, her initiatives have bolstered patient engagement and satisfaction through personalized interventions, augmenting membership growth and service efficiency.
Looking ahead, Swapna Nadakuditi advocates for continued innovation in healthcare, emphasizing the transformative potential of AI technologies integrated with wearable devices and IoT. She predicts that advancements in AI, coupled with regulatory support, will reshape healthcare delivery by making it more efficient, predictive, and patient-centered.
Swapna Nadakuditi’s leadership in Bytes of Healing exemplifies how AI and ML are reshaping healthcare, turning precision medicine and patient-centric care from distant goals into tangible realities. Her pioneering efforts highlight the transformative potential of technology in improving health outcomes and setting new benchmarks for the industry. As she continues to innovate at the intersection of data science and healthcare, Swapna’s vision for the future includes further integration of AI with wearable devices and IoT, promising even more personalized and effective healthcare solutions.
Source: freepressjournal.in
The post Bytes Of Healing: Digital Innovation Meets Patient-Centric Care Through AI/ML appeared first on HIPTHER Alerts.

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