Contact from IRS Criminal Investigation raises different concerns from a routine request to clarify a tax return. Before agreeing to an interview or submitting an explanation, obtain advice on the potential criminal issue. Arkady Bukh Law Firm assists clients facing federal tax crime allegations and helps coordinate the legal response with appropriate accounting work.
An effective defense begins with the suspected offense, the relevant tax periods and the evidence of what the taxpayer knew. A discrepancy in a return deserves attention, but the legal analysis should distinguish a tax error from the elements of a criminal charge.
Understand the allegation under Section 7201
Tax evasion under 26 U.S.C. § 7201 is a felony carrying a maximum prison term of five years. IRS guidance identifies an additional tax due, an affirmative attempt to evade tax or its payment, and willfulness as elements of the offense.
Other tax-related charges can involve different requirements. Counsel should identify the alleged conduct and statutory provision instead of treating every filing problem as tax evasion. Foreign accounts, business records or cryptocurrency activity may also raise separate reporting questions.
The government’s calculation and its account of intent both need examination. The defense should know which transactions the investigators consider unreported income and why they regard the conduct as intentional.
Examine the evidence of willfulness
Relevant records may include prior returns, bookkeeping materials, communications with preparers and advice received before filing. We consider whether the client disclosed the underlying facts, asked questions about treatment and acted consistently with the advice given.
An accountant’s involvement is not an automatic defense. Its significance depends on the facts, including the accuracy of the information supplied and the nature of the advice. Similarly, a claim of misunderstanding should be tested against contemporaneous messages and conduct.
The defense should address the difficult parts of the record. An explanation that works for one year may not account for a change in reporting in another. A clear chronology helps identify what the evidence supports and where further investigation is required.
Coordinate accounting work with criminal defense
Tax calculations can require detailed review of deposits, expenses, transfers and supporting documents. A qualified tax professional may help reconstruct the records or examine the government’s assumptions. Counsel should define the purpose of that work and consider privilege issues under applicable law.
Do not assume that all communications with an accountant have the same protection as confidential legal advice. The structure and limits of the engagement should be discussed before a detailed analysis is circulated.
An amended return or payment decision may also have consequences beyond the civil tax balance. Obtain advice on how the proposed step fits the criminal matter before acting on the assumption that it will resolve everything.
Assess the stage of the IRS matter
A civil audit, a criminal investigation and a federal prosecution involve different procedures and decisions. Counsel can help identify the known status and respond to requests through the appropriate process.
The IRS Voluntary Disclosure Practice has eligibility and timeliness requirements. It should be evaluated before assuming that it remains available after government contact. The IRS describes consideration of qualifying disclosures in prosecution recommendations; the practice does not provide a blanket guarantee of immunity.
Civil collection remedies also have a separate purpose. A proposal to address a tax debt does not automatically resolve criminal exposure. A coordinated strategy should explain what each proposed filing or negotiation is intended to accomplish.
Questions about criminal tax defense
Should I speak with IRS special agents to explain a mistake
Seek advice from criminal defense counsel before a substantive interview. Your lawyer can evaluate the request, the records and the potential effect of the explanation. Do not provide false information or alter documents.
What documents should I preserve
Retain the relevant returns, notices, bank records, business books and communications with preparers. Identify the years and entities involved. Start the intake process with a brief summary and deadlines so detailed records can be transferred after the conflict check.
Can paying the balance end a criminal tax case
Payment can matter, but it does not automatically dispose of a criminal allegation. The effect depends on the offense, the stage of the matter and the complete circumstances.
Discuss an IRS criminal defense engagement
Email info@arkadybukhlawfirm.com with the agency contact, relevant tax years and any deadline. Arkady Bukh Law Firm can discuss the immediate legal response and the financial review needed to assess the allegations.
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