OF THESE CASES, 584 INVOLVED TAX FRAUD.
1
THERE WERE 67,742 CASES REPORTED TO
THE UNITED STATES SENTENCING COMMISSION IN
FISCAL YEAR 2016.
Top Five Districts
Tax Fraud Offenders
FY 2016
Northern District of Illinois
(N=32)
Eastern District of New York
(N=29)
Eastern District of California
(N=28)
Central District of California
(N=23)
Eastern District of Pennsylvania
(N=22)
635
584
0
2,000
4,000
6,000
8,000
10,000
FY 2012 FY 2016
Number of
Tax Fraud Offenders
$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
Median Tax Loss for
Tax Fraud Offenders
1
Tax fraud offenses include cases with complete guideline application
information in which the offender was sentenced under §2T1.1 (Tax
Evasion; Willful Failure to File Return, Supply Information, or Pay Tax;
Fraudulent or False Returns, Statements, or Other Documents) or §2T1.4
Aiding, Assisting, Procuring, Counseling, or Advising Tax Fraud) using a
Guidelines Manual in effect on November 1, 2001 or later.
2
Of the 67,742 offenders sentenced in fiscal year 2016, 5,784 were excluded
from this analysis due to incomplete guideline application information.
Tax Fraud Offenses
1
In fiscal year 2016, there were 584 tax fraud offenders, who accounted for 1.0%
2
of all
offenders sentenced under the guidelines. The number of tax fraud offenders has decreased
slightly during the last five years.
Offender and Offense Characteristics
• In fiscal year 2016, approximately two-thirds of tax fraud offenders were male
(68.8%).
• The majority were White (49.0%) followed by Black (30.3%), Hispanic (12.7%),
and Other Races (8.1%).
• The average age of these offenders at sentencing was 50 years.
• The majority of tax fraud offenders were United States citizens (94.0%).
• The majority of tax fraud offenders had little or no prior criminal history (80.0%
of these offenders were assigned to Criminal History Category I).
• The median tax loss for these offenses was $218,035.
3
90.7% of tax offenses involved tax losses of $1.5 million or less.
25.9% of tax offenses involved tax losses of $100,000 or less.
• Sentences for tax fraud offenders were increased for:
11.0% of offenders for using sophisticated means to execute or conceal the
offense.
6.3% of offenders for having a leadership or supervisory role in the offense.
4.1% of offenders for abusing a public position of trust or using a special
skill.
5.3% of offenders for obstructing or impeding the administration of justice.
• Sentences for tax fraud offenders were decreased for:
3.9% of offenders because they were a minor or minimal participant in the
offense.
Punishment
• Nearly two-thirds of tax fraud offenders were sentenced to imprisonment (63.9%).
• The average sentence length for tax fraud offenders was 15 months.
THESE OFFENDERS WERE SENTENCED UNDER
SECTIONS 2T1.1 AND 2T1.4 OF THE U.S. SENTENCING
COMMISSION’S GUIDELINES MANUAL.
Tax Fraud Offenses
1
0.0
25.0
50.0
75.0
100.0
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
Sentence Relative to the
Guideline Range
Within Above
Gov't Spons. Below Other Below
Substantial
Assistance
53.7%
Other Gov't
Spons. Below
46.3%
Government Sponsored
Below Range Sentences
FY 2016
0
10
20
30
40
50
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
Average Sentence and
Average Guideline Minimum
(in months)
Sentence Guideline Minimum
Sentences Relative to the Guideline Range
• During the past five years, the rate of within range sentences for tax fraud
offenders has decreased (from 36.2% in fiscal year 2012 to 24.7% in fiscal year
2016).
• In each of the past five years, approximately one-fifth to one-quarter of tax fraud
offenders received a sentence below the guideline range because the government
sponsored the below range sentence.
Substantial assistance departures were granted in approximately 14 to 17
percent of tax fraud cases in each of the past five years.
These offenders received an average reduction of 67.5% in their
sentence during the five year time period (which corresponds to an
average reduction of 17 months).
Other government sponsored departures were granted in approximately six
to thirteen percent of tax fraud cases in each of the past five years.
These offenders received an average reduction of 64.5% in their
sentence during the five year time period (which corresponds to an
average reduction of 12 months).
• The rate of non-government sponsored below range sentences increased during
the past five years (from 42.5% of tax fraud cases in fiscal year 2012 to 46.4% in
fiscal year 2016).
Reductions for non-government sponsored below range sentences were
smaller than in cases in which the government sponsored a below range
sentence, with an average reduction of 58.6% during the five year time
period (which corresponds to an average reduction of 12 months).
• Both the average guideline minimum and average sentence have varied slightly
for the past five years.
The average guideline minimum ranged between 24 months and 26 months
during that time period;
The average sentence imposed decreased from 18 months to 15 months
during that time period.
3
The Tax Table was amended effective November 1, 2015.
SOURCE: United States Sentencing Commission Datafiles,
2012 through 2016, USSCFY12-USSCFY16.
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