What To Know About IRS Criminal Investigations

What To Know About IRS Criminal Investigations

IRS criminal investigation

Is the IRS After You?

If the IRS sends you a subpoena or knocks on your door this spring, you need to know what you’re up against.

The first thing you should know is this: If you’ve been given notice you’re under investigation, it’s one of the last procedures before they file charges. Before you get a subpoena in the mail, here is what you need to understand about an IRS criminal investigation.

An IRS criminal investigation is not the same as an IRS audit. During an audit, the IRS is determining whether you correctly prepared your tax return. During an investigation, though, the IRS is building a criminal case, which means you will be prosecuted by the U.S. attorney’s office.

If you’re convicted, you are subject to severe consequences, including fines and jail time.

This is why it’s essential to understand the signs and reasons for an IRS criminal investigation. There are many reasons the IRS prosecutes taxpayers. Some of the most typical are listed below.

Typical Reasons the IRS Prosecutes Taxpayers

  • Willful failure to pay
  • Fraudulent statements
  • Additional taxes due
  • Attempt to defeat taxes
  • Tax evasion
  • Willful failure to maintain records
  • Tax evasion/avoidance
  • Bankruptcy fraud
  • Gaming-related fraud
  • Health care or insurance fraud
  • Money laundering
  • Real estate fraud
  • Questionable tax refunds

Red Flags

If you’re concerned the IRS is investigating you, there are a few red flags you need to be aware of.

1. Your bank records have been subpoenaed by the U.S. attorney’s office or the IRS Criminal Investigation Division (CID).
2. You contacted an IRS agent and they suddenly stop working with you. This is a sign they may have reported you to the CID.
3. You’re working through an audit yet the IRS stops talking to you. This often happens when a case is referred to the CID.

When the CID takes on a case, any changes to your account could jeopardize their case against you. If a CID agent contacts you or you notice any of the signs above, be sure to contact an experienced IRS tax attorney immediately to discuss your options.

Contact us for a FREE no-obligation consultation at (949) 260-4770 or help@landmarktaxgroup.com.

~ Michael Raanan MBA, EA, Former IRS Agent

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