IRS Tax Fraud Information & Advice From The Tax Lawyer

The Department of Justice Criminal Tax Division has the ultimate authority to review and prosecute criminal tax cases. If you are subject to a criminal tax investigation or prosecution, it will likely be headed by the DOJ. The department has the power to authorize or decline criminal prosecutions, take action in response to Criminal Investigation Division or U.S. Attorney Grand Jury requests, and to oversee tax matters involving Tax Division directives.

Identity theft is a serious crime and of increased concern in recent years. Identity theft occurs when someone uses another person’s personal information, such as name or Social Security Number (SSN), without permission, to commit fraud or other crimes. There are several different types of identity fraud and the taxpayer’s response to each should be tailored to address the unique circumstances involved.

Tax attorneys may be called upon to help clients if they are victims of identity theft such as refund theft. Identity theft is a relatively new crime, but it is widespread and potentially very damaging to taxpayers. The IRS has responded to the threat by establishing several departments and pathways for tax representatives and their clients to file identity theft claims to seek relief.

Criminal and civil sanctions against IRS tax fraud are not mutually exclusive. As a practical matter, civil and criminal tax fraud penalties are treated independently and a taxpayer can easily be subject to both at the same time. If a taxpayer has been convicted of a tax crime and hit with severe criminal sanctions, he or she may still receive civil sanctions as well.

A lesser-known criminal tax offense is called interference with the administration of tax laws. This offense is found in IRC § 7212(a), which prohibits conduct intended to interfere with the administration of tax laws.

Representing a client in a criminal tax investigation and prosecution is very different than in other criminal contexts. In a criminal tax case, counsel’s role is crucial during investigation and long before an indictment is ever made.

If a special agent in a tax crime investigation issues a summons which is ignored, the Criminal Investigation Division may institute an enforcement action against the summonsed party. The U.S. District Courts have the sole original jurisdiction to review noncompliance with administrative summonses issued by the IRS. If the summons is not complied with within six days of being issued, the Criminal Investigation Division may begin the process of initiating a judicial proceeding.

The Department of Justice Criminal Tax Division has the ultimate authority to review and prosecute criminal tax cases. If you are subject to a criminal tax investigation or prosecution, it will likely be headed by the DOJ. The department has the power to authorize or decline criminal prosecutions, take action in response to Criminal Investigation Division or U.S.

As a Tax Lawyer representing clients in a criminal tax investigation, one of the most important defense strategies is knowing when to cooperate with an IRS special agent and when to refuse cooperation. Over the course of the special agent’s investigation, the taxpayer will be faced with numerous opportunities to cooperate or refuse cooperation. This is an extremely important decision that should be made only after complete and thorough deliberation.

Taxpayers and counsel will interact with government personnel in various situations during the course of a criminal tax investigation or prosecution. In a previous article, we discussed how counsel should behave in IRS conferences and in correspondence with IRS or DOJ personnel. In this article, we will look into some additional interactions between government personnel and counsel.