Overview
As part of the United States' effort to enforce sanctions imposed on Russia resulting from Russia's invasion of Ukraine, the Department of Justice announced the formation Task Force KleptoCapture.1 The Task Force includes officials from the Department of Justice Tax Division and the IRS Criminal Investigation Division and is authorized to investigate and prosecute any criminal offense related to its mission, including tax offenses.2
The Task Force is designed to isolate Russia from global markets and enforcing and prosecuting sanctions imposed in response to the Ukraine invasion. The Task Force's mission is wide-ranging and designed to target persons with financial connections to Russia. In particular, the Task Force will target efforts to use cryptocurrency to evade US sanctions.3
The IRS Criminal Investigations Division focuses on complex investigations and can recommend prosecution for criminal violations that involve the Internal Revenue Code, including potential issues related to Russian ownership of US assets.
In response to the Ukraine invasion, Senate Finance Committee Chairman Ron Wyden (D-OR) has called for Congress to provide additional resources and funding to strengthen the Criminal Investigation Division.4 Chairman Wyden further noted the Senate Finance Committee will be examining tax provisions used by Russian elites "to hide assets and avoid taxes" in the United States.5
Endnotes
1 Press Release, US Department of Justice, Attorney General Merrick B. Garland Announces Launch of Task Force KleptoCapture (March 2, 2022), available at https://www.justice.gov/opa/pr/attorney-general-merrick-b-garland-announces-launch-task-force-kleptocapture.
2 Id.
3 Id.
4 Press Release, Senate Finance Committee, Wyden Outlines Finance Committee Next Steps to Hold Russia Accountable for Ukraine Invasion (March 1, 2022), available at https://www.finance.senate.gov/chairmans-news/wyden-outlines-finance-committee-next-steps-to-hold-russia-accountable-for-ukraine-invasion.
5 Id.
