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Not only does the IRS have the power to impose serious civil penalties, charge interest, and seize assets as a consequence of tax issues, there is also a whole section of the Internal Revenue Code that deals with criminal tax issues.
While it is statistically rare, you could face criminal charges including fines and even jail time for tax fraud.
The IRS and other federal agencies may conduct criminal investigations for alleged violations of the Internal Revenue Code, the Bank Secrecy Act, and other statutes regarding money laundering. While the IRS is not a prosecuting agency, it may conduct criminal investigations and turn over its findings to the US Department of Justice with a recommendation for prosecution.
The chances are slim that an average citizen will face criminal prosecution over tax issues, but the government does prosecute average individuals if it believes that it can prove that an individual was willful in failing to report all income and there is a tax due and owing.
Criminal investigations take time and money, so generally, the IRS will not devote its resources to pursue criminal charges against you, without a lengthy and comprehensive investigation. This means there are many steps you can take to avoid criminal tax issues. In this blog, we have detailed four ways to avoid tax-related criminal charges. Please keep in mind, every case is unique and thus this blog is not intended as legal advice for your specific situation. Consult with an experienced attorney like those at Weisberg Kainen Mark for counsel regarding your tax issues.
Hire a tax defense attorney at the first sign of trouble
At the first indication that you are going to have an issue with the IRS, immediately contact an experienced tax defense attorney like those at Weisberg Kainen Mark. A strong attorney will be able to advise you on exactly what steps you need to take to ensure that your tax issues do not become criminal issues.
Do not attempt to destroy records, conceal records, or lie
Willfully concealing or destroying pertinent tax or income records could quickly land you in hot water. In fact, the actual act of destroying these records could be a crime in and of itself, which would only serve to make criminal tax fraud charges even worse. Additionally, willfully lying to IRS agents could have a similar impact. Rather than lying, utilize your right to remain silent and allow your attorney to answer questions for you.
Don’t try to hide from tax issues
If the IRS sends you correspondence, you need to respond appropriately. Avoiding it will not make the issue go away, it will only make it worse.
Cooperate with an audit
A tax defense attorney can help manage a tax audit on your behalf, but either way you need to cooperate with an IRS auditor. Acting defiantly or belligerently under certain circumstances could put a case that otherwise could have been equitably resolved on the fast track to a criminal investigation.
Don’t allow a relatively simple tax issue to turn into a criminal issue. If you are facing tax issues with the IRS, please contact the law office of Weisberg Kainen Mark today.
Weisberg Kainen Mark, PL
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