IRS Criminal Tax Cases Are on the Rise

Internal Revenue Service (IRS) criminal tax cases are on the rise. We have seen an increase in these cases in recent weeks. The IRS is targeting both businesses and individuals, and, in addition to targeting income tax evasion and tax fraud, it is also targeting offenses involving IRS payroll and business taxes. Learn more from Boston criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

When the IRS Pursues Criminal Tax Cases

Generally speaking, the IRS pursues criminal cases when it has reason to believe a taxpayer has willfully underreported or underpaid its federal tax obligations. While the IRS can (and does) pursue civil audits and collection actions regardless of taxpayers’ intent, in most cases, pursuing criminal charges requires evidence of intentional tax evasion or tax fraud.

As noted above, while the IRS is targeting intentional ordinary income tax evasion and tax fraud, it is targeting other criminal tax violations as well. This includes criminal violations of the Internal Revenue Code (IRC), Bank Secrecy Act (BSA) and other federal statutes. Some examples of potential allegations in IRS criminal tax cases include:

• Abusive tax avoidance schemes
• IRS business tax fraud
• IRS payroll tax fraud
• Offshore bank account abuse
• Tax refund and credit schemes (including ERC fraud)

All of these are serious federal offenses that carry substantial fines and prison time (in addition to liability for any taxes owed). As a result, when facing these types of allegations, it is imperative that both individuals and businesses engage an experienced Boston criminal tax attorney promptly.

How the IRS Pursues Criminal Tax Cases

Criminal matters are handled by IRS Criminal Investigation (IRS CI). Special agents at IRS CI use the agency’s authority to conduct comprehensive and invasive investigations—raiding taxpayers’ homes and offices, subpoenaing records and testimony, and working with the agency’s federal and state law enforcement partners. However, in many cases, taxpayers do not learn that they are under investigation until the investigation is already well underway. IRS CI also relies on the government’s technological resources to identify red flags for criminal tax violations, and in many cases, it works with banks, exchanges, and other intermediaries to gather information as well.

Once agents at IRS CI believe they have sufficient evidence to warrant criminal charges, they will engage with prosecutors at the U.S. Department of Justice (DOJ). The DOJ will then seek an indictment, and if an indictment is issued, prosecutors will fight for maximum penalties in federal court.

Need to know more? Contact us to speak with an IRS and DOJ criminal tax attorney today.

Request a Confidential Consultation with Boston Criminal Tax Attorney Kevin E. Thorn

Thorn Law Group focuses its practice exclusively on representing clients in high-stakes federal tax matters. If you are under investigation by IRS CI or facing prosecution by the DOJ, we can help, but it is important that you contact us promptly. Call 617-692-2989 or contact us online to request a confidential consultation with Boston criminal tax attorney Kevin E. Thorn.