Individual and Offense Characteristics

• 70.3% of individuals sentenced for tax fraud offenses were men.
   
• 47.1% were White, 25.6% were Black, 16.7% were Hispanic, and 10.6% were Other races.
   
• Their average age was 52 years. 
   
• 93.6% were United States citizens.
   
• 85.6% had little or no prior criminal history (Criminal History Category I).
   
• The median loss for these offenses was $358,827;[3] 
  • 14.4% involved loss amounts of less than $100,000;
  • 16.8% involved loss amounts greater than $1.5 million.
     
• Sentences were increased for: 
  • using sophisticated means to execute or conceal the offense (13.6%);
  • a leadership or supervisory role in the offense (7.5%);
  • abusing a public position of trust or using a special skill (3.3%);
  • obstructing or impeding the administration of justice (4.7%).
     
• Sentences were decreased for: 
  • minor or minimal participation in the offense (1.4%).
     
• The top five districts for individuals sentenced for tax fraud were:
  • Central District of California (18);
  • Middle District of Florida (18);
  • Southern District of Texas (15);
  • Western District of Texas (15);
  • District of New Jersey (14).

Punishment

• The average sentence for individuals sentenced for tax fraud offenses was 16 months. 
   
• 63.6% were sentenced to prison. 
   
• 1.1% were convicted of an offense carrying a mandatory minimum penalty; of those individuals, none were relieved of that penalty.

Sentences Relative to the Guideline Range 

• Of the 30.3% of all individuals sentenced for tax fraud under the Guidelines Manual:
  • 54.1% were sentenced within the guideline range.
     
  • 34.9% received a substantial assistance departure.
    • Their average sentence reduction was 77.7%.
       
  • 11.0% received some other downward departure.
    • Their average sentence reduction was 64.5%.
       
• 69.7% received a variance; of those individuals: 
  • 97.2% received a downward variance.
    • Their average sentence reduction was 65.0%.
       
  • 2.8% received an upward variance.
    • Their average sentence increase was 46.1%.

• The average guideline minimum increased and average sentence imposed remained steady over the past five years.
  • The average guideline minimum increased from 26 months in fiscal year 2019 to 28 months in fiscal year 2023.
     
  • The average sentence imposed was 16 months in fiscal year 2019 and fiscal year 2023.