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So your probably sitting there with this Department of Justice Civil Investigative Demand about tax fraud and your entire life is flashing before your eyes. Maybe the IRS referred your case for criminal prosecution. Maybe a whistleblower claimed you filed false returns. Or maybe your just caught up in there latest crackdown on tax cheats. Look, we get it. Your ABSOLUTELY TERRIFIED. And you should be! Because tax fraud under IRC § 7201 carries 5 years in federal prison and $250,000 in fines – PER COUNT!
This is critical to understand – when DOJ gets involved, your not dealing with accountants anymore! All criminal tax matters must be referred to DOJ Tax Division for prosecution authorization. If you got a DOJ CID, the IRS already thinks your a criminal!
Here’s how it works: IRS Criminal Investigation builds the case, then refers it to DOJ Tax Division for prosecution. DOJ reviews it and decides whether to indict. By the time you get a DOJ CID, they’ve already decided your probably going to prison – there just gathering final evidence!
The really scary part? IRS has a 90% conviction rate once cases reach DOJ! That means 9 out of 10 people in your position end up as convicted felons. Your not facing a tax dispute anymore – your facing the full power of federal criminal prosecution!
Sit down and hold onto something because these numbers will destroy you. Criminal tax fraud isn’t just about paying what you owe – its about PRISON TIME and life-destroying penalties!
Tax evasion (26 USC § 7201): 5 years prison + $250,000 fine per count. Filing false returns (26 USC § 7206): 3 years prison + $250,000 fine per return. Failure to file (26 USC § 7203): 1 year prison + $100,000 fine per year. But here’s the killer – civil fraud penalty adds 75% on top of taxes owed!
Let me paint you a nightmare scenario: You underreported income for 5 years. That’s 5 counts of tax evasion (25 years prison) + 5 false returns (15 years) = 40 YEARS potential prison time! Plus $2.5 million in criminal fines! Plus back taxes, interest, and 75% civil fraud penalty! We’ve seen middle-class taxpayers face $5 million in total liability from $200,000 in unpaid taxes!
Your probably wondering “Why did IRS refer me to DOJ?” IRS uses “badges of fraud” to identify criminal cases:
Understatement of income is huge – unreported cash, offshore accounts, cryptocurrency, or side businesses. False deductions trigger prosecutions – fake charity donations, inflated business expenses, phantom employees. Concealment activities seal your fate – using nominees, destroying records, lying to agents, structuring transactions.
But here’s what’s really unfair – even honest mistakes become “willful” if you should have known better! Forgot about that investment account? Willful blindness! Trusted your accountant’s bad advice? Still willful! Used TurboTax wrong? WILLFUL! We’ve seen soccer moms prosecuted for tax fraud because they didn’t understand contractor vs. employee rules!
The scope of DOJ tax fraud CIDs is absolutely crushing. There demanding EVERYTHING that could possibly relate to your taxes:
All financial records from every account worldwide, business records including QuickBooks files and receipts, emails about income or expenses, text messages mentioning money, loan applications (they love finding different income figures!), divorce filings, bankruptcy documents, even social media posts showing your lifestyle!
But here’s what’s especialy terrifying – parallel civil and criminal investigations mean double jeopardy! The IRS pursues civil penalties while DOJ pursues criminal charges. You get destroyed from both sides simultaneously!
Once DOJ has your case, avoiding prosecution is extremely difficult but not impossible. The government must prove willfulness beyond reasonable doubt for criminal conviction.
But here’s the problem – “willfulness” in tax crimes just means you knew you had a duty and violated it. Everyone knows they have to pay taxes! So unless you can prove complete ignorance of tax law (good luck with that!), your facing an uphill battle.
Voluntary disclosure used to help, but now it’s almost worthless if your already under investigation. Cooperation might reduce your sentence from 5 years to 3, but your still a convicted felon. Paying back taxes doesn’t stop prosecution – it just reduces restitution at sentencing!
Oh, this is another nightmare! Many states prosecute tax fraud separately from federal charges! States have their own criminal tax statutes with additional prison time!
New York tax fraud can add 15 years. California tax evasion adds 5 years. And these stack ON TOP of federal sentences! We’ve seen clients face federal prosecution, state prosecution, and civil penalties all for the same conduct. Its triple jeopardy but perfectly legal!
State prosecutors love tax cases because there easy wins that generate revenue. Your local DA gets headlines for prosecuting “tax cheats” while filling state coffers. One client faced 5 years federal, 7 years state, and $3 million in combined penalties for $400,000 in taxes!
Buckle up for years of torture. Criminal tax investigations average 2-3 years from start to sentencing:
DOJ CID and document review (3-6 months), grand jury investigation (6-12 months), indictment and arraignment (sudden, without warning), pretrial motions and discovery (6-12 months), plea negotiations or trial (6-12 months), sentencing if convicted (2-4 months after). Your looking at 3-4 years minimum of hell!
During this time, your life is completely frozen. IRS liens everything you own. Banks close your accounts. Employers fire you. Professional licenses get revoked. Passport gets confiscated. And legal fees? Expect $750,000 to $1.5 million for a federal tax fraud defense!
NEVER! ABSOLUTELY NEVER! The biggest mistake people make is trying to explain themselves! Any statement to federal agents can become evidence of willfulness!
“I thought it was deductible” = admission you knew about the expense! “My accountant handled it” = admission you knew returns were filed! “I was planning to amend” = admission you knew it was wrong! Everything you say proves willfulness!
Even worse, lying to federal agents is a separate crime (18 USC § 1001) carrying 5 more years! Forget a date? That’s lying! Misremember an amount? Lying! Get nervous and misspeak? LYING! The only safe response is complete silence until you have experienced counsel!
This will make you sick – accountant-client privilege is extremely limited and doesn’t apply to criminal investigations!
Your CPA can be forced to testify against you about: return preparation conversations, documents you provided, advice they gave you, and concerns they raised. Everything you told your accountant becomes evidence! We’ve seen accountants become star witnesses AGAINST there own clients!
Even if your accountant made the mistake, YOU’RE still liable! “Reliance on professional” is not a defense to criminal tax charges. The government says you should have known your return was wrong even if a CPA prepared it. Your accountant’s error becomes YOUR crime!
Look, we’re not your typical tax attorneys who negotiate payment plans. We’re criminal defense attorneys who specialize in keeping people out of federal prison when tax problems become criminal prosecutions. We know both tax law AND criminal procedure at the highest level.
We understand how IRS Criminal Investigation builds cases and there weaknesses. We know DOJ Tax Division’s prosecution standards and how to attack them. We can challenge willfulness elements that prosecutors take for granted. Most importantly, we know how to negotiate with DOJ to avoid indictment when possible or minimize sentences when necessary.
Other firms tell you to cooperate and show good faith. That’s EXACTLY how people end up with 5-year sentences! The government doesn’t care about your explanations – they want convictions. We fight strategically, forcing them to prove every element while building reasonable doubt!
Call us RIGHT NOW at 212-300-5196
DOJ tax fraud prosecutions destroy lives FAST!
Former federal prosecutors on our team – Available 24/7!
Don’t wait another second! Once DOJ has your case, every day counts. There presenting to grand juries, preparing indictments, planning arrests. You could wake up tomorrow with FBI agents at your door!
Remember – tax fraud prosecutions have a 90% conviction rate because people don’t get proper representation until its too late. The time to fight is NOW, before your mistakes become felonies. Call us IMMEDIATELY – your freedom literally depends on it!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS