Have You Been the Target of a Criminal Tax Investigation?
Common Types of Federal Tax Crimes
The law enforcement branch of the IRS is the IRS Criminal Investigation Division (CID). If you are under investigation for possible tax crimes, then you could be facing serious penalties, including criminal prosecution under felony penalties. Federal tax crimes may include:- Tax evasion
- Tax fraud
- Failure to file
- Money laundering
- Failure to collect employment taxes
- Conspiracy
What to Do
If you believe that you have exposure for a criminal tax matter or been the target of a criminal investigation, you must speak with our San Diego tax lawyers immediately. If you receive a call from a special agent from the IRS CID, you must always assert your right to an attorney. Do not assume that you have to answer any questions. You have the right to remain silent and you should always consult with your lawyer before speaking with any type of federal investigator. Anytime the IRS tries to make contact with you, this may be a sign that you are currently under investigation by the IRS. It will be crucial to act quickly and retain an experienced and hard-hitting attorney who can fight on your behalf.IRS Badges of Fraud
Typically, the Internal Revenue Service (IRS) looks for specific “red flags” that may suggest tax evasion or other forms of tax crimes. The IRS may accuse someone of fraud from what are commonly referred to as “Badges of Fraud.” The badges of fraud include the following acts:- Understatement of income or failure to report all income
- Failure to keep adequate records
- Implausible/inconsistent explanations of behavior
- Hiding assets
- Non-cooperation with tax authorities
- Concealing illegality
- Dealing in excessive amounts of cash
- Failing to make estimated tax payments
- The IRS has also published a list of various categories of IRS indicators of fraud.