If you are the subject of a criminal tax investigation for tax fraud or tax evasion charges, or you are seeking tax amnesty, you need an experienced New York Lawyer who understands the tax laws working for you. Get a free consultation with a skilled attorney today.
Please read more about Tax Fraud and Tax Evasion
Types of Tax Crimes
There are several different types of tax crimes. You may be guilty of committing a tax crime if you intentionally avoid paying taxes by either 1) intentionally submitting false tax returns, 2) failing to file your tax return when tax is owed, 3) under-reporting your taxable income, or claiming excess deductions that reduce your tax liability, or 4) assisting others in the illegal conduct described above.
Tax Fraud and Evasion Investigations
A criminal tax investigation often originates from a referral from a civil tax auditor when they suspect illegal conduct. A criminal tax crime is usually investigated by either 1) the Internal Revenue Service by their Criminal Investigation Division (CID), 2) your State Attorney General, or 3) the county District Attorney, in the county that you reside.
These governmental agencies employ investigators and agents trained in law enforcement techniques and tactics, and act in a similar manner as police detectives to investigate the potential crime.
A criminal tax investigation for tax fraud or tax evasion is a very serious matter. Please do not discuss the tax issues with the investigators, or any other person until you obtain legal counsel who specializes in tax law issues. A criminal tax fraud or tax evasion charge against you has the potential to result in imprisonment. When you learn, or suspect that you may be the target of a criminal investigation, your best course of action is to immediately contact an experienced tax attorney since they have the training and experience to assist you.
Prosecution of Tax Crimes
For IRS tax matters, once the tax investigation is completed and the special agent in charge of the case recommends prosecution, the IRS conducts many levels of review before a final decision is made to forward the case to the United States Department of Justice Tax Division in Washington, D. C., for prosecution. At the U.S. Department of Justice, Tax Division, prosecutors specializing in criminal tax crimes review the case and make the final decision whether the case should be prosecuted. If the Department of Justice, Tax Division, approves prosecution of the file, the case is transferred back to a local U.S. Attorney’s office with the direction that the individual, or individuals, be prosecuted for the offenses alleged.
In tax crime cases, whether for tax fraud or tax evasion, this multi-tiered review and approval process can work to your advantage. This is the case since there are a number of different opportunities for your counsel to influence your case before it ever reaches the final decision makers. If it is a State tax case, the State Attorney General or the County District Attorney, will decide if the case merits a prosecution, and your attorney has the ability to influence this decision as well.
Tax amnesty is a limited time opportunity for a specified group of taxpayers to pay a defined amount of amount owed, in exchange for forgiveness of a tax liability (typically the penalties owed) relating to a previous tax period or periods and without fear of criminal prosecution. The Amnesty program typically is not available when some tax authority begins an investigation of the past-due unpaid taxes.
By: Timothy S. Hart