IRS Agents Raid Massachusetts Restaurant and Gentlemen’s ClubArticles/News, Hot Topics
Posted on November 6, 2019 | Share
According to a recent AP news report published on Boston.com, Internal Revenue Service (IRS) agents recently raided two Massachusetts businesses working in cooperation with the Federal Bureau of Investigation (FBI) and Massachusetts State Police. A spokeswoman for the FBI stated that the raids were “court authorized activity in connection with an ongoing investigation.” The news report indicates that the owners of both businesses are currently cooperating in the investigations. The investigations and comments thus far have not made clear who the targets of the raids are yet; however, they could be employees (including dancers, waitresses, hosts and security), as well as management and/or the owners of the establishments. All of these individuals will need the services of an experienced criminal tax attorney. Here, Boston criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, discusses some of the potential charges involved.
What Does it Mean When a Business is Targeted by the IRS?
The report does not provide any details on the subject matter of the investigations other than to say that, “[t]here is no threat to public safety.” However, given the IRS’s involvement, it is likely that at least some of the allegations being targeted have to do with criminal tax violations.
The IRS’s Criminal Investigation Division conducts raids and other enforcement efforts targeting a broad range of federal tax crimes. While underreporting and underpaying federal tax (also referred to as tax evasion) are common allegations, there are numerous other issues that can trigger IRS criminal investigations as well. These include alleged involvement in practices such as:
- Obtaining fraudulent tax refunds
- Offshore bank account abuse and other international tax violations
- Employment and excise tax fraud
- Insurance and financial institution fraud
- Public corruption and bribery
- Drug and organized crime-related violations of the Internal Revenue Code (IRC)
- Money laundering
- Tax evasion
- Failure to file tax returns or pay taxes
Other possible results outside of a criminal investigation would be severe civil audits resulting in additional taxes, penalties and interest.
While a raid can be a business’s first “warning” that it is under investigation by the IRS, oftentimes, a raid will be preceded by an IRS audit. This is particularly true in cases where businesses attempt to deal with IRS agents on their own, without the benefit of legal representation. As a result, regardless of how a business is contacted by the IRS, and regardless of whether the business’s owners believe they have anything to hide, it is essential to engage the services of an experienced IRS audit or criminal tax attorney.
Are Boston Businesses Being Targeted by the IRS, FBI, and Massachusetts State Police?
The fact that these two raids occurred in such close time proximity suggests that federal and state authorities may be undertaking an initiative to target businesses in Boston and the surrounding areas. It is common for the IRS, FBI, and other agencies to conduct targeted enforcement efforts in specific geographic locations and involving specific types of alleged criminal activity. While there is no indication that either of the businesses searched was involved in any sort of criminal enterprise, these types of targeted enforcement efforts can often suggest that federal authorities are working on a large-scale takedown involving multiple related and unrelated businesses.
Contact Boston Criminal Tax Attorney Kevin E. Thorn, Managing Partner of Thorn Law Group
If you have been contacted by FBI agents, IRS agents or the Massachusetts state police regarding alleged tax crimes, we encourage you to contact us immediately. For a confidential consultation with Boston criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, call 617-692-2989 or inquire online now.