The Start of IRS Criminal Investigations

There is nothing worse than being caught in the middle of a criminal investigation by the IRS and what may be considered as “drastic action” to some, any incidents relating to tax that actually warrant such an investigation in the first place is a serious matter because there must be reason enough to be deemed worthy of such a legal undertaking. Not only can this result in huge fines, how would you feel about a hefty fine which could not just lead to your downfall or even risk facing a stretch in the state penitentiary just for becoming of interest to the IRS?

Most of the time those being investigated are not aware of it until they are summoned to court on charges of tax evasion but the IRS won’t want to arouse the suspicions of the most serious or frequent offenders (perhaps those who have been in prison or fined previously for similar charges), look for the hints which could mean that you are being watched and could potentially be called up on charges relating to tax evasion:

Have you owed money to the IRS, which is long overdue yet “chaser” letters and/or phone calls demanding that it be paid have stopped?
If this is the case then you need to prepare yourself because at the end of the day, debt never disappears especially those involving the IRS and the government so you may hear from the Criminal Investigation Division (CID) shortly which could also make an offer to pay the outstanding amount obsolete, your case may not have been referred to the CID but how would you know?

Tax Audits are taking longer than is necessary!
In most cases this may not mean anything as tax audits can take time but should an agent working on behalf of the IRS specifically request them and they take time to review any documents provided then this could be bad news. It may mean as with the above point that your case has fallen into the hands of CID because your previous or current returns seem unusual.

The CID or Local U.S. Attorney’s Office have requested copies of your bank records!
Your bank is at liberty to inform you of any such requests but for the CID or U.S Attorney’s Office to obtain information of this nature, first they must issue a summons or a grand jury subpoena. If this has occurred then they obviously have just reason to request bank records and this helps build a strong which is often what leads to a conviction against an individual or group of people.

Your accountant is required to attend court with your tax returns!
If you have an accountant to handle all of your finances then should you be subject to an IRS or CID investigation it is 99% likely that they will be required to attend court with some or all of your tax returns following the issuing of a summons or grand jury subpoena.

It is highly recommend that once you are under investigation not to discuss any element with your accountant because in a court of law once they stand in the witness box, they are required to tell the truth, in not doing so he/she would be putting themselves at risk of committing a crime themselves, one word, Perjury.

With any investigation of this nature, accountants play a major part in this type of case but under U.S. v Koval, 296 F.2d 918 (2d Cir. 1961) they cannot be classed as part of a defense team until they are retained by counsel, only then can an accountant be brought in as an attorney-client privilege and any other ensuing cases which basically means that any information you have provided to your accountant will at some point be confronted in court and will need to be told in front of judge and jury.

Requesting previous tax returns!
When it comes to requesting tax returns then these are going to be assessed under what is known as an “egg shell audit”, if the IRS have requested previous tax returns then these are more likely than not going to be returns which may show an overage or underage of funds being listed (both to your advantage) which either way does warrant an investigation by the IRS initially and the possibility of further action still.

It is the job of specially trained agents to look for “fraudulent transactions” and this is where previous tax returns come in. These are normally requested directly from your accountant (if you have one) and while your accountant is normally privy to providing a confidential service if there is a sign of criminal activity which is being investigated by the IRS or CID then what is known as the “accountant-client privilege” does not hold any water should there be any criminal activity involved.

IRS Agents have been trying to contact you!
This is often a sign that any investigation, which has been conducted on you, is coming to a close and if this is the case, it is one phone call that could change your life (for the worst) from that point. Take this as a warning.

Known as “special” agents who are employed by the IRS, they will try and get you to talk and maybe even admit wrongdoing in which they will bombard you with information; this method can be extremely effective but our advice in this situation is to not say anything at such a point and simply but politely state that you are going to liaise with counsel (don’t mention the word lawyer as this may show that you have something to hide) about the matter. Never try and handle what is a delicate matter on your own because in it often leads to one’s downfall.

No situation of this nature should be ignored and needs to be dealt with immediately; at this point it is more than a warning and is to be taken extremely seriously indeed because this could only be the beginning of going down a bad road. There are not many investigations and subsequent court cases of this nature so it is vital to get the best counsel possible for your defense so how and where can you find someone with the vital qualifications and skills to represent and even contest your case in court?

We can!

Our highly qualified team is here to help with such matters so call us today and start sorting out what could quickly become a case of “treading over the broken glass”.