What Can I Expect During an IRS Criminal Tax Audit?

For U.S. taxpayers facing IRS criminal tax audits, knowing what to expect is critical to building an informed and strategic defense. These audits present substantial risks, as federal criminal tax charges carry steep fines and prison time. Find out what to expect—and what you need to do to protect yourself—from experienced Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

What To Expect (and What to Do) During an IRS Criminal Tax Audit

IRS criminal tax audits can move quickly. Equally important, by the time you find out that you are facing a criminal tax audit, the IRS’ inquiry is most likely already well underway. With this in mind, here is what you can expect as the process moves forward:

1. IRS Personnel Will Want Unfettered Access to Your Financial Records

When conducting a criminal tax audit, IRS personnel will want unfettered access to your financial records. While you may be required to provide access to certain records, you do not have to give the IRS access to everything. To ensure that you do not disclose potentially incriminating records to the IRS unnecessarily, you should engage experienced defense counsel immediately.  

2. IRS Personnel Will Be Focused on Uncovering Evidence of Noncompliance

While IRS audits are ostensibly intended to uncover both underpayments and overpayments, auditors generally focus on uncovering evidence of noncompliance. This is especially true in criminal cases. When examining your records, IRS personnel will be seeking to find evidence of any possible criminal tax law violations.

3. There is a High Likelihood that You Will Face Charges if You Don’t Intervene

Given the focus of IRS criminal tax audits, there is a very high likelihood that your audit will lead to criminal charges if you don’t intervene. To intervene effectively, you need to have a clear understanding of your risk exposure—and this also requires experienced legal representation.

4. Your Tax Attorney Can Communicate with the IRS on Your Behalf

Once you engage an experienced tax attorney to represent you, your attorney will be able to communicate with the IRS on your behalf. Your attorney will also be able to help protect any privileged records against disclosure, and your attorney will be able to help you avoid mistakes that could jeopardize your defense.

5. Your Tax Attorney Can Target a Resolution that Avoids Criminal Prosecution

As your attorney deals with your criminal tax audit on your behalf, your attorney will target a resolution that avoids criminal prosecution. Whether this involves targeting a settlement or working to convince the IRS to drop its inquiry without further consequences will depend on the circumstances. Of course, there are no guarantees, and your attorney will also be prepared to represent you in federal court if necessary.

Request a Consultation with Boston Tax Attorney Kevin E. Thorn

If you are facing an IRS criminal tax audit in Massachusetts, we encourage you to contact us promptly for more information. To request a consultation with Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, call 617-692-2989 or tell us how we can reach you online now.