They got Al Capone on tax evasion (not fraud) because he evaded taxes, not because of some grand scheme. The IRS is interested in collecting taxes, not policing.
On a related note, the IRS also requires that you report and pay taxes on all the money you made by robbing banks, selling drugs, and embezzling your employer's coffers.
Nobody who hasn't already been convicted will fill out those forms, of course, but that's another criminal charge if the DA wants to put you away for even longer.