|
We realize that receiving a notice from the IRS can be unnerving, but if you follow these simple steps, the process to resolving the discrepancy should be straight forward
|
Real Estate Industry Fact Sheet by Criminal Investigation
Through federal tax fraud investigations and money laundering charges, the Internal Revenue Service is playing a key role in the fight against real estate fraud.
Federal investigators have identified an increase in frauds and schemes in the real estate business. These schemes victimize individuals and businesses, including low-income families lured into home loans they cannot afford, legitimate lenders saddled with over-inflated mortgages and honest real estate investors fleeced out of their investment dollars.
Special agents with IRS Criminal Investigation are uniquely equipped to investigate these types of mortgage fraud and illegal real estate crimes because they are skilled financial investigators whose mission is to 'follow the money.'
Some of the common real estate fraud schemes include:
The income earned from these types of real estate fraud schemes is often laundered to hide the money from the government. Money laundering is simply a process of trying to make illegally earned income appear to be legitimately earned. IRS Criminal Investigation follows the money and collects evidence to prove applicable tax and/or money laundering violations. Once they have obtained the evidence, IRS agents forward their investigation to the Department of Justice for criminal prosecution.
If a criminal investigation is not warranted, the IRS can also take civil action. Each year the IRS audits thousands of tax returns involving individuals and entities associated with the real-estate business.
FY2008 |
FY2007 | FY2006 | |
---|---|---|---|
Investigations Initiated |
349 | 337 | 309 |
Prosecution Recommendations |
263 | 217 | 198 |
Indictments/Informations |
255 | 134 | 157 |
Convictions |
136 |
130 |
131 |
Sentenced |
104 | 147 |
96 |
Incarceration Rate* |
82.7% | 85.7% | 87.5% |
Avg. Months to Serve |
38 | 35 | 47 |
* How to Interpret Criminal Investigation Data Since actions on a specific investigation may cross fiscal years, the data shown in cases initiated may not always represent the same universe of cases shown in other actions within the same fiscal year. Therefore, in fiscal year 2007, the data should reflect an increase in convictions and sentenced due to the fiscal year 2006 increase in case initiations, prosecution recommendations and indictments. |
|||
*Incarceration may include prison time, home confinement, electronic monitoring, or a combination. |
For Summaries based on public record court documents on file in the judicial district in which the cases were prosecuted please follow the link.
Trends and Statistics - Real Estate
This site provides industry specific and general survey results that should be of interest to the small business owner.
![]() |
|
National Association of Home Builders The National Association of Home Builders (NAHB) is a federation of more than 800 state and local builders associations throughout the United States. U.S. Department of Housing and Urban Development Research The U.S. Department of Housing and Urban Development has information on trends and statistics. Census Non-Employer Statistics Provides periodic statistics that count and profile U.S. businesses with no paid employment and payroll. The United States Code, Titles 13 and 26, authorizes this program. Characteristics of Business Owners Survey The 1992 Characteristics of Business Owners (CBO) Survey provides the only national data available for comparing selected economic, demographic, and sociological characteristics among minority, women, nonminority male, and all business owners and their businesses. Statistics about Business Size (including Small Business) from the U.S. Census Bureau The Census Bureau does not define small or large business, but provides statistics that allow users to define business categories in any of several ways: in terms of employers and nonemployers, employment size of firms, employment size of establishments, receipts size of firms, and legal form of organizations. Surveys of Minority - and Women-Owned Business Enterprises These surveys provide valuable economic data on business owners' race, ethnicity, and gender, and are part of the economic census program, which the Census Bureau is required to conduct every 5 years by law (Title 13 of the United States Code). |
Audit Technique Guides - Real Estate
The IRS Market Segment Specialization Program (MSSP) publishes various guides for use by IRS employees conducting audits and as information for taxpayers and practitioners.
|
Related Links - Real Estate
This page provides you links to sites that have specific information dealing with real estate.
America's Small Business Development Center Network (ASBDC)
The mission of the ASBDC is to represent the collective interest of our members by promoting, informing, supporting and continuously improving the SBDC network, which delivers nationwide educational assistance to strengthen small/medium business management, thereby contributing to the growth of local, state, and national economies.
Environmental Protection Agency
The mission of the U.S. Environmental Protection Agency is to protect human health and to safeguard the natural environment--air, water and land--upon which life depends.
Federal Historic Preservation Tax Incentives
The Federal Historic Preservation Tax Incentives program is one of the nation's most successful and cost-effective community revitalization programs. The program fosters private sector rehabilitation of historic buildings and promotes economic revitalization.
National Association of Home Builders
The National Association of Home Builders (NAHB) is a federation of more than 800 state and local builders associations throughout the United States.
National Association of Realtors
The National Association of Realtors is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry.
National Association of Residential Property Managers (NARPM)
NARPM is an association of real estate professionals who know first-hand the unique problems and challenges of managing single-family and small residential properties.
National Association of the Self-Employed
The NASE was founded in 1981 by a group of small-business owners seeking the kinds of benefits and services once only available to large corporations.
National Business Association
The National Business Association is a non-profit organization dedicated to supporting and educating the small business community and the self-employed. The National Business Association monitors legislation in Washington D.C. and provides updates and information on current issues and trends facing the small business community.
National Federation of Independent Business (NFIB)
NFIB, the National Federation of Independent Business, is the largest advocacy organization representing small and independent businesses in Washington, D.C. and all 50 state capitals.
National Housing & Rehabilitation Association
Established in 1971, the National Housing & Rehabilitation Association is a national membership organization that promotes partnerships among sophisticated professionals in the affordable multifamily housing field.
National Small Business Association (NSBA)
NSBA *formerly National Small Business United has been the advocate for small businesses since 1937. With 65,000+ U.S. members through its chapters & affiliate organizations, NSBA not only keeps small-business owners in touch with legislative & regulatory issues that affect them, but this non-partisan advocacy group seeks to engage the small business community to take action.
National Trust for Historic Preservation
Ever since it was founded in 1949, the National Trust has shown how preservation can play an important role in strengthening a sense of community and improving the quality of life.
U.S. Department of Housing and Urban Development
HUD's mission is to help provide a decent, safe, and sanitary home and suitable living environment for every American.
U.S. General Services Administration Office of Property Disposal
The U.S. General Services Administration hosts this site which lists property for sale.
U.S. Small Business Administration
The U.S. Small Business Administration, established in 1953, provides financial, technical and management assistance to help Americans start, run, and grow their businesses.
Financial Resources - Real Estate
This section provides you with direct links to many commonly used financial resources for small businesses.
Freddie Mac
Freddie Mac's mission is to stabilize the nation's mortgage markets and expand opportunities for homeownership and affordable rental housing.
Fannie Mae
Fannie Mae provide financial products and services that make it possible for low-, moderate- and middle-income families to buy homes of their own.
Veterans Administration Home Loan Guaranty Services
The Veteran's Administration has a Home Loan Program for Veterans.
HUD Federal Housing Administration - Buying a Home
The U.S. Department of Housing and Urban Development has a list of Federal Housing Administration programs.
SBA Web Site
The SBA Website provides you with direct links to many commonly used financial resources for small businesses.
SBA Summary Business Loan Data
Just click on the region you are interested in for a comprehensive monthly update of business loan information.
SBA: Search Loan Detail Information
Search the SBA database for more specific business loan information.
SBA Office of Advocacy: Banking Studies - Small Business Lending in the U.S.
Since 1994, the Office of Advocacy has released its analysis of call report data collected by the Federal Reserve on the lending activity of about 8,500 individual reporting commercial banks.
Small Business Investment Companies (SBIC) Program – Financing Statistics
SBIC provide venture capital to small independent businesses, both new and already established. Visit the SBA Web site for the latest financing statistics for the SBIC program.
General Small Business Information
This section provides general small business information useful in all industries and professions. It includes links to small business products, employment taxes, electronic filing and paying, taxpayer burden reduction, abusive tax avoidance transactions, and many other topics.