When you face signs of trouble from the Internal Revenue Service, or if you suspect that you are being examined for possible tax crimes, it may be time to speak with a lawyer who has experience in these matters. Early contact with our New York tax attorneys at Thorgood Law Firm may help you understand what lies ahead and guide you through what can feel like a confusing process. If you need legal counsel now, call for a free initial consultation and learn how our lawyers may assist you.
The first rule to observe in criminal tax investigations is not to speak with IRS agents without your lawyer present. On one hand, there is certainly very little upside for doing speaking with IRS agents without your New York tax attorney present. On the other hand, speaking with IRS Agents without your lawyer present is a hazardous minefield. A wrong answer may, in of itself, lead to felony charges – for giving false statements to a government agent. Even if you end up not guilty of the substantive charges brought against you, you may end up going down for false statements; think Martha Stewart here…
When you work with our New York tax attorneys at Thorgood Law Firm, you gain the advantage of drawing on our understanding of tax law and how the IRS operates. The earlier you start, the better the chance that your lawyer can guide you through each part of the investigation.
Facing a criminal tax matter is not something to handle alone. The laws can be complicated, and the IRS may seem to hold all the cards. However, having legal counsel from Thorgood Law Firm means you can learn your rights, understand the rules, and work toward the best possible outcome.
What Is a Criminal Tax Investigation?
A criminal tax investigation is a detailed process in which IRS special agents look into whether you have committed a tax-related crime. This might involve allegations such as tax evasion, filing false returns, failing to report certain income, or engaging in other acts that could lead to criminal charges. The focus of such an investigation is not just to collect money. Instead, it aims to determine whether the taxpayer willfully broke tax laws.
You may first realize you are involved in a criminal tax defense investigation when agents contact you. They might request interviews or documents. Again, you should never speak with IRS Special Agents without your lawyer present. They may also speak with your coworkers, relatives, or neighbors. Their work goes beyond a normal audit since they are searching for evidence of criminal wrongdoing that could support charges and possibly lead to prosecution.
Understanding that the IRS’s role here is not merely to correct a return but to seek possible criminal penalties can be unsettling. That feeling alone often signals the need for prompt legal counsel.
Why Do These Investigations Occur?
Criminal tax investigations do not happen in every tax problem. The IRS sets certain standards and guidelines before opening a criminal probe.
Often, a criminal investigation begins after an IRS auditor or other official finds signs of possible fraud or intentional malfeasance. Other times, the IRS may receive information from informants, banking institutions, or other government agencies. In some situations, patterns of suspicious behavior reported by a financial institution can trigger interest from the IRS’s Criminal Investigation Division.
No matter how these investigations start, they are not random. The IRS dedicates resources to them when it suspects that something more than a simple mistake happened.
Once the case falls under a criminal investigation, the taxpayer is dealing with special agents (who carry guns!) who have a law enforcement role. They may look for evidence that can stand up in a criminal court. At that point, the matter stops being a minor or civil tax issue and becomes something that could end up before a judge or jury.
How Are Civil and Criminal Tax Matters Different?
There is a key distinction between a civil tax audit and a criminal tax investigation. A civil audit often focuses on correcting errors, collecting the right amount of tax owed, and applying certain fines or penalties. Mistakes or misunderstandings may be resolved by providing new documents or agreeing to pay additional amounts. These civil matters often do not lead to prison terms.
A criminal tax investigation, on the other hand, looks for evidence of intentional wrongdoing. If the government can prove beyond a reasonable doubt that the taxpayer broke the law on purpose, the consequences can include fines, restitution, and even time in prison. If an agent informs you that your matter is now being handled by the IRS Criminal Investigation Division, or if you learn that your case has been referred to the Department of Justice for prosecution, this is a clear signal that you need a lawyer who has experience in criminal tax matters.
What Could Happen if You Ignore an IRS Criminal Investigation?
Ignoring signs of a criminal tax investigation invariably will lead to serious problems. You might hope it will just go away, but the IRS does not simply drop these matters without resolution. If you fail to respond, the IRS may move forward on its own. If the IRS believes you are hiding information, it may increase its efforts. This can lead to subpoenas for bank records, business records, or even interviews with colleagues who may not be as careful about what they say. Depending on the situation, the IRS may even obtain a warrant to come to your home or office to grab records and other materials.
The longer you wait, the fewer options you may have later. By not seeking legal counsel early, you might lose the chance to provide explanations that could have cleared things up. You might also fail to present evidence that shows you acted in good faith. Without guidance of a best tax attorney , you risk allowing the agents to shape the narrative. This can make it easier for the government to build a strong case against you. Many people who ignore these signs regret it later when the matter is too far along to fix easily.
Plea Agreements and Other Possible Outcomes
If the IRS believes it has enough evidence to pursue criminal charges, the matter might progress toward negotiations with the government. In some criminal tax cases, the defendant and the government may discuss plea agreements. A plea agreement might involve admitting to certain facts in exchange for reduced charges or penalties. But you should never consider such options without legal counsel. Our lawyers can help you understand what you gain or lose by agreeing to a plea.
Not every case reaches that stage. In some cases, legal counsel may persuade the IRS that criminal prosecution is not warranted. The government might then drop the matter or treat it as a civil issue. Alternatively, the case may proceed to court, where a judge or jury decides your fate. Each possible path has different risks and benefits. Our New York tax attorneys at Thorgood Law Firm can discuss which options make sense and what might happen if you choose one approach over another.
How Does the Legal Process Work in a Criminal Tax Case?
A criminal tax matter typically begins with an investigation phase, during which IRS special agents gather evidence. If they find enough evidence, the matter may be referred to the Department of Justice, which decides whether to bring charges. If charges are filed, you will be required to appear in court for arraignment. At this stage, having a lawyer is critical. Our lawyers may represent you during arraignments, file motions, challenge certain evidence, and represent you during any negotiations with prosecutors.
If the case goes to trial, you have the right to present a defense and cross-examine witnesses. The burden is on the government to prove wrongdoing beyond a reasonable doubt. At Thorgood Law Firm, we understand how to challenge the government’s claims, present evidence that supports your position, and argue your case before the court. Even if the government’s evidence seems strong, our lawyers might identify issues that weaken their position. Without legal counsel, it would be very hard to defend yourself effectively.
Contact Our New York Tax Attorneys at Thorgood Law Firm Today
Facing a criminal tax investigation is a serious matter, but you do not have to face it alone. Our New York tax attorneys at Thorgood Law Firm are prepared to speak with you and understand your situation. Whether you have just received a letter from the IRS or you suspect that agents are already investigating you, it may be wise to seek legal counsel now. Pick up the phone and call for a free initial consultation. Let us explain how our lawyers can help guide you through this process, giving you the chance to protect your interests.
For more than two decades, our attorneys have represented individuals and businesses across the country facing tax disputes, including those at risk of criminal prosecution. We understand that each client’s case is unique, and we provide legal counsel tailored to your needs. We are not a large firm that treats you as a number. We give personal attention and aim to handle each matter with care. By working closely with you, we can help reduce the confusion that often comes with criminal tax investigations.
Call us at: (212) 490-0704. You can also contact us online.
Our New York tax attorneys at Thorgood Law Firm stand ready to listen to your concerns, explain your rights, and help you find a path forward. These are not issues you need to face alone. With the right legal counsel, you can better understand the situation and move toward resolving it. Reach out now and take control of your case before the IRS does it for you.
