IRS begins audits of banks and creates task force to probe misuse of pandemic tax incentives and nonprofits

Misleading

Facts are technically correct but framed in a way that likely leads to a wrong impression. Learn more in Methodology.

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enforcement

Audits of the specified financial institutions are underway and a task force has been established to investigate alleged misuse of pandemic-era tax incentives and 501(c)(3) status.

Source summary
Treasury Secretary Scott Bessent announced a set of federal actions aimed at dismantling a large fraud scheme tied to Somali-organized activity in Minnesota. The Treasury has issued notices of investigation to money services businesses, implemented a Geographic Targeting Order to increase reporting on certain international transactions, released alerts about fraud in child nutrition programs, provided law enforcement financial-data training, and said the IRS has begun audits of banks suspected of laundering proceeds. Bessent also announced a task force to probe misuse of pandemic-era tax incentives and 501(c)(3) status, offered whistleblower incentives, and criticized Minnesota state leadership while saying the work could be a model for national rollout.
Latest fact check

The Treasury remarks page for January 13, 2026 explicitly states: “Additionally, the IRS initiated audits of financial institutions suspected of laundering fraud proceeds and announced the creation of a task force to investigate misuse of pandemic-era tax incentives and 501(c)(3) status.” This aligns with the first part of the claim about IRS audits: a January 9, 2026 Treasury press release confirms that “IRS civil enforcement is auditing financial institutions that facilitated the laundering of Minnesota funds,” meaning those audits were indeed underway. However, the same January 9 press release states that “The IRS will also soon announce the formation of a task force to investigate any fraud and abuse involving pandemic-era tax incentives and misuse of 501(c)(3) tax-exempt status…,” indicating that as of that date the task force’s formation had not yet been formally announced and was described as forthcoming, not completed. As of January 13, 2026, there is no separate IRS or Treasury document publicly available that actually makes this task force announcement; only the earlier statement that such an announcement “will…soon” occur. The statement is therefore accurate about IRS audits but overstates the status of the task force by presenting a planned, not yet formally announced, initiative as if it had already been created and announced. The verdict is Misleading because part of the claim is supported (audits have been initiated), but the wording about the task force implies a completed official announcement that available evidence still describes as future and forthcoming, likely causing an average reader to overestimate how concrete and advanced that task force is as of the stated date.

14 days
Next scheduled update: Mar 01, 2026
14 days

Timeline

  1. Scheduled follow-up · Mar 01, 2026
  2. Completion due · Mar 01, 2026
  3. Update · Jan 14, 2026, 08:52 AMMisleading
    The Treasury remarks page for January 13, 2026 explicitly states: “Additionally, the IRS initiated audits of financial institutions suspected of laundering fraud proceeds and announced the creation of a task force to investigate misuse of pandemic-era tax incentives and 501(c)(3) status.” This aligns with the first part of the claim about IRS audits: a January 9, 2026 Treasury press release confirms that “IRS civil enforcement is auditing financial institutions that facilitated the laundering of Minnesota funds,” meaning those audits were indeed underway. However, the same January 9 press release states that “The IRS will also soon announce the formation of a task force to investigate any fraud and abuse involving pandemic-era tax incentives and misuse of 501(c)(3) tax-exempt status…,” indicating that as of that date the task force’s formation had not yet been formally announced and was described as forthcoming, not completed. As of January 13, 2026, there is no separate IRS or Treasury document publicly available that actually makes this task force announcement; only the earlier statement that such an announcement “will…soon” occur. The statement is therefore accurate about IRS audits but overstates the status of the task force by presenting a planned, not yet formally announced, initiative as if it had already been created and announced. The verdict is Misleading because part of the claim is supported (audits have been initiated), but the wording about the task force implies a completed official announcement that available evidence still describes as future and forthcoming, likely causing an average reader to overestimate how concrete and advanced that task force is as of the stated date.
  4. Original article · Jan 13, 2026

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