Criminal Tax Matters 

Think you might be the subject of an investigation for tax evasion by Uncle Sam?  Have your records been handled long-term by someone you trusted so much that you simply signed and filed tax returns without reviewing them for accuracy? Have you associated with a CPA or financial advisor who is currently under investigation?  Have you or your business been visited by an IRS Special Agent?

If you answered yes to any of these questions, don’t attempt to handle the issue on your own.  To protect your best interests and your rights as a taxpayer, invest in advice from a knowledgeable and professional tax attorney.

Why?  The IRS is not in business to prosecute taxpayers who unwittingly violate the law. The IRS is in business to collect tax dollars.  The IRS relies heavily on taxpayers’ voluntarily compliance with the Internal Revenue Code.  Audits are conducted on a relatively atypical basis compared to the number of taxpaying citizens in the U.S. Because going after the bad guys is extremely costly in terms of manpower and finances, IRS activities frequently center on collecting whatever the taxpayer reports that he or she owes rather than around attempting to prosecute a taxpayer for tax evasion.

But if the IRS does decide to look into your financial matters on a criminal level, the Criminal Investigation Division (“CI Division”) steps in. The CI Division looks most closely at those cases which reveal a taxpayer’s willing, knowing, and deliberate noncompliance with the Internal Revenue Code.

  • Sometimes a taxpayer may not be aware of violating the Code, but has offended so often that his or her actions appear deliberate.
  • Sometimes a taxpayer may have fallen victim to those people who are believed to be trustworthy but whose actions reflect adversely on the taxpayer.
  • Sometimes the taxpayer knowingly may not have complied with the Code because of existing adverse financial circumstances, and the taxpayer believes that she or he can become compliant as monetary conditions improve.
  • And sometimes the taxpayer may simply not have believed that she or he was bound by any tax laws and erroneously thought that noncompliance could not be punished if it were based on ignorance or citizen protest of paying federal income taxes.

When there is legitimate reason to suspect a taxpayer of deliberate and willful fraudulent acts, the CI Division can be a tough enemy. Often the CI Division will be the one division of the government that can take down an offender when all other avenues fail – think Al Capone.

The CI Division generally launches tax fraud investigations because of one of four different circumstances:

  • Fraud referrals from other divisions within the IRS (i.e., when an audit triggers belief of gross and repeated non-compliant activity.
  • Information provided by other government agencies and divisions (i.e., Food and Drug Administration or the Bureau of Alcohol, Tobacco, Firearms, and Explosives).
  • Information provided by private parties, who can remain anonymous if desired.
  • And matters and projects developed specifically within the CI Division.

An investigation by the CI Division into your financial affairs can cripple you both personally and professionally. But no matter the circumstances, you are entitled to fair representation before the IRS.  If you suspect that you are the subject of an ongoing criminal tax investigation, call our team of professionals at Law Offices of Christy Lee, P.C.:

  • We act to protect your rights while simultaneously launching our own research into your situation.
  • We will determine the stage of the CI Division’s investigation and work to alleviate the charges against you.
  • While we will always seek a satisfactory resolution before trial, we will defend you before a jury as necessary.
  • And we will advise you concerning appropriate strategies to implement so that you can avoid entanglement in similar situations in the future.

Call our tax boutique for guidance if you are targeted by the CI Division.  Consulting with us concerning your criminal tax matter can be the best possible investment for yourself both personally and professionally.