“Working with law enforcement entities across government, the I.R.S. is already in the process of investigating Russian oligarchs and those who facilitate the illegal movement of money or assets on their behalf,” the report said.
The I.R.S. has been involved in more than 20 investigations related to money laundering by oligarchs since 2017, working with other law enforcement agencies to track assets and seize property, the report said.
The criminal investigations division of the I.R.S. has a storied history; its agents have helped take down notorious tax cheats such as Pete Rose and Al Capone. Like the rest of the I.R.S., the unit has seen its budget depleted in recent years. The size of its staff declined 25 percent over the last decade.
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In the last month, its task became much more complicated.
The United States has enacted sweeping sanctions on Russia in response to its invasion of Ukraine, freezing the assets of its central bank, blocking transactions associated with major financial institutions and targeting top government officials and oligarchs. Experts consider the sanctions to be the most robust ever directed at a major economy, but they are also expected to spur aggressive evasion measures by Russians.
I.R.S. officials said they would use financial tracing technology and work with banks and international counterparts to track how oligarchs and others were shifting money and assets around the world in violation of the sanctions. They are looking for signs of newly created fictitious businesses that could be used to shelter assets and transactions involving cryptocurrencies, which criminals use to move money anonymously.