IRS Criminal Tax Investigations Targeting Tax Preparers: What Executives and Business Owners in Boston Need to Know

In addition to targeting individual and corporate taxpayers, the Internal Revenue Service (IRS) also targets tax preparers. The IRS routinely launches investigations into tax preparers’ practices—and, while many of these investigations are civil in nature, the IRS also works with the Justice Department to pursue criminal charges when warranted. So, should you be concerned? Here are some key insights from Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

The IRS Targets Tax Preparers for a Wide Range of Offenses

The IRS targets tax preparers for a wide range of offenses. While good-faith tax advice and honest mistakes generally won’t subject tax preparers to criminal scrutiny, the appearance of facilitating tax evasion or tax fraud can lead to criminal allegations. Some examples of allegations that can have criminal implications for tax preparation businesses (and their owners and executives) include:

• Hiding income sources
• Using complex corporate structures to evade federal tax liability
• Claiming fraudulent deductions
• Improperly claiming federal tax credits
• Submitting false information in connection with federal grant and program applications

Again, these are just examples. Criminal tax investigations targeting tax preparers can involve numerous other allegations as well; and, in all cases, allegations of criminal impropriety can present risks for both substantial fines and federal imprisonment.

The IRS Also Uses Tax Preparer Investigations to Target Taxpayers

Along with pursuing charges against tax preparers (and their owners and executives), in many cases the IRS will use criminal tax investigations targeting tax preparers to pursue charges against taxpayers as well. Oftentimes, these investigations will lead to allegations of a conspiracy to commit tax evasion or tax fraud—and conspiracy allegations can warrant federal prosecution regardless of whether the object of the alleged conspiracy was achieved.

Of course, if a tax preparer’s services help facilitate tax evasion or tax fraud, this can warrant federal prosecution as well. Here too, all parties involved can face criminal charges, and taking a proactive approach to defending against the IRS’s investigation can be critical for mitigating the risks involved.

Criminal Tax Investigations Present Substantial Risks for All Parties Involved

From individual tax preparers to CEOs and business owners who work with tax preparers to illegally evade federal tax liability, all parties involved in alleged tax fraud and tax evasion conspiracies can face serious federal charges. If the IRS is targeting your business (or your tax preparer) in Boston, we encourage you to contact us promptly for more information.

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

Kevin E. Thorn, Managing Partner of Thorn Law Group, is an experienced Boston tax attorney who has a proven record of success in high-stakes federal tax matters. If your business (or your tax preparer) is facing a criminal tax investigation, he can engage with the IRS effectively on your behalf. To schedule a confidential consultation as soon as possible, call us at 617-692-2989 or tell us how we can reach you online now.