Boston Tax Fraud Lawyer

Companies and Individuals Accused of Tax Fraud in Boston Can Face Civil or Criminal Penalties

Combating tax fraud is a top enforcement priority for the Internal Revenue Service’s (IRS) Field Office in Boston. The IRS targets both companies and individuals for tax fraud, and it pursues both civil and criminal enforcement action when warranted.

If you are facing scrutiny from the IRS, or if the IRS is looking into your company’s finances and tax filings, it is important that you engage defense counsel promptly. You do not want to deal with the IRS on your own in this scenario. When IRS auditors or investigators determine that a taxpayer has underreported or underpaid its federal income tax liability, they will not hesitate to impose civil penalties or seek intervention from the U.S. Department of Justice (DOJ).

Experienced Defense Counsel for IRS Tax Fraud Audits and Investigations in Boston

Our firm provides experienced legal representation for individual and corporate taxpayers accused of tax fraud in Boston. We have significant experience handling IRS audits, IRS CI investigations and other tax controversies. Whether you are facing scrutiny for alleged failure to file, failure to pay, or fraudulently claiming credits or other benefits, we can gain control of your situation and help steer the government’s inquiry toward a favorable resolution.

Our Boston Tax Fraud Lawyer Represents Individual and Corporate Taxpayers in All Tax Fraud Matters

Tax fraud allegations can take many different forms. When facing IRS scrutiny, it is imperative to quickly discern the focus of the audit or investigation as well as the scope of the allegations at issue. Broadly speaking, the IRS focuses its enforcement efforts in the areas of:

• Income tax reporting and payment violations
• Employment tax violations
• Fraudulent refund claims
• International tax fraud
• Tax preparer fraud

Within these (and other areas), the IRS has identified a number of specific enforcement priorities in recent years. For example, in recent years we have seen a significant volume of IRS audits and investigations targeting the following forms of tax fraud:

Abusive Tax Schemes

Abusive tax schemes designed to evade federal income tax liability can expose Boston taxpayers to civil or criminal prosecution. As the IRS notes, when investigating suspected abusive tax schemes, it focuses on discerning whether these schemes prioritize “form over substance.” While there are several legitimate ways for individual and corporate taxpayers to mitigate their federal income tax liability, the line between effective tax planning and tax fraud can be extremely fine. If the IRS suspects that a taxpayer is using a trust arrangement, corporate organization or other structure to illegally evade tax, it will not hesitate to initiate an audit or investigation focused on substantiating allegations of fraud.

Corporate Tax Fraud

The IRS targets companies of all sizes in cases of suspected corporate tax fraud. While the IRS devotes substantial resources to targeting large companies suspected of underreporting and underpaying their income and employment tax liability, its Small Business/Self-Employed Division is also extremely active. From failing to report cash receipts to improperly claiming business credits and deductions, corporate tax fraud investigations can focus on a wide range of allegations.

COVID-19 Relief Tax Fraud

Along with the DOJ, the IRS is prioritizing enforcement in cases involving suspected COVID-19 relief fraud. For example, the IRS is continuing to go after companies and individuals that fraudulently obtained Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loans, and many companies that have claimed employee retention credits under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Taxpayer Certainty and Disaster Tax Relief Act are facing scrutiny as well.

Cryptocurrency Tax Fraud

Cryptocurrency tax fraud is another top enforcement priority for the IRS. The IRS is able to obtain cryptocurrency investors’ identities through various means, and it uses data from exchanges and other third-party sources to determine whether taxpayers have underreported or underpaid their cryptocurrency-related income tax liability. As each individual cryptocurrency transaction is potentially a taxable event, high-volume coin traders face particular risks when it comes to accurately reporting their tax liability and avoiding allegations of federal tax fraud.

Gaming and Gambling Tax Fraud

Gaming and gambling tax fraud have also become priorities for the IRS, primarily due to the rise of consumer-focused online platforms. Whether engaged in legal (i.e. casino or daily fantasy sports) or illegal (i.e. live sports) gaming or gambling, Boston residents can expect to face IRS scrutiny if they fail to timely and accurately report their winnings to the IRS.

Offshore Disclosure Violations

U.S. taxpayers residing in Boston have a duty to report their offshore holdings to the IRS (provided their holdings meet certain thresholds). Even if no tax is owed, failing to report offshore holdings can lead to a federal tax fraud audit or investigation. Taxpayers must comply with both the Bank Secrecy Act (which creates the FBAR filing obligation) and the Foreign Account Tax Compliance Act (FATCA), and failure to file any required report can trigger significant civil or criminal penalties.

RICO Act, Money Laundering and Narcotics-Related Tax Fraud

The IRS also audits and investigates taxpayers suspected of Racketeer Influenced and Corrupt Organizations Act (RICO Act) violations, including violations involving money laundering, narcotics-related tax fraud, and other crimes. These are often extremely high-risk cases, and numerous individuals may be implicated in the same alleged tax fraud conspiracy.

Regardless of why you are facing IRS scrutiny, if you need to defend against allegations of tax fraud in Boston, you need experienced legal representation. Our attorneys, including Kevin E. Thorn, Managing Partner of Thorn Law Group, have decades of relevant experience, and we can use this experience to help protect you.

Discuss Your Situation with a Boston Tax Fraud Lawyer in Confidence

If you need to speak with a Boston tax fraud lawyer about any matter involving the IRS or its criminal investigations division (IRS CI), we encourage you to contact us promptly. To schedule a confidential consultation with Boston tax fraud lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, call 617-692-2989, email ket@thornlawgroup.com or tell us how we can reach you online today.