Individual and Offense Characteristics

• 73% of individuals sentenced for tax fraud were men.²
   
• 51% were White, 19% were Black, 18% were Hispanic, and 12% were Other races.
   
• Their average age was 53 years. 
   
• 94% were United States citizens.
   
• 86% had little or no prior criminal history (Criminal History Category I).
   
• 72% received the adjustment at USSG §4C1.1 for zero criminal history points.
   
• The median loss for these offenses was $546,562;³
  • 7% involved loss amounts of less than $100,000;
  • 28% involved loss amounts greater than $1.5 million.
     
• Sentences were increased for:
  • using sophisticated means to execute or conceal the offense (16%);
  • a leadership or supervisory role in the offense (6%);
  • abusing a public position of trust or using a special skill (2%);
  • obstructing or impeding the administration of justice (4%).
     
• Sentences were decreased for:
  • minor or minimal participation in the offense (2%).
     
• The top five districts for tax fraud offenses were:
  • Middle District of Florida (30);
  • District of New Jersey (24);
  • Southern District of New York (17);
  • Central District of California (15);
  • Southern District of Florida (14).

Punishment

• The average sentence length for individuals sentenced for tax fraud was 17 months. 
   
• 68% were sentenced to prison. 
   
• No individuals were convicted of an offense carrying a mandatory minimum penalty.

Sentences Relative to the Guideline Range 

• 43% of sentences for tax fraud were under the Guidelines Manual.
  • 25% were within the guideline range.
     
  • 15% were substantial assistance departures.
    • The average sentence reduction was 78%.
       
  • 2% were some other downward departure.
    • The average sentence reduction was 60%.
       
• 57% of sentences for tax fraud were variances.
  • 56% were downward variances.
    • The average sentence reduction was 61%.
       
  • 1% were upward variances.
    • The average sentence increase was 36%.

• The average guideline minimum increased and average sentence imposed have remained steady over the past five years.
  • The average guideline minimum was 25 months in fiscal year 2021 and 26 months in fiscal year 2025.
     
  • The average sentence imposed was 14 months in fiscal year 2021 and 17 months in fiscal year 2025.