Your Miranda Rights in IRS Criminal Investigations

Your Miranda Rights in IRS Criminal Investigations

Dealing with the IRS can be scary, especially if you find yourself the subject of a criminal investigation. Many people don’t realize that you actually have certain rights and protections when being questioned by IRS criminal investigators. One of the most important rights you have is your Miranda rights, which originate from the famous Supreme Court case Miranda v. Arizona.

This article will explain what your Miranda rights are, when they apply in IRS criminal investigations, and how to make sure your rights are protected if you ever find yourself in this situation. We’ll also look at some real cases where Miranda came into play with the IRS. Let’s dig in!

What Are Your Miranda Rights?

Your Miranda rights come from the Fifth Amendment to the U.S. Constitution, which protects you against self-incrimination in criminal cases. The specific Miranda warnings were created in 1966, when the Supreme Court decided the case of Miranda v. Arizona.

In that case, the Court ruled that when someone is taken into “custody” by police and subject to “interrogation,” they must be informed of their rights before any questioning happens. Otherwise, any statements the person makes are not admissible in court.

Your standard Miranda rights are:

• You have the right to remain silent.
• Anything you say can be used against you in court.
• You have the right to talk to a lawyer before answering any questions.
• If you cannot afford a lawyer, one will be appointed for you before questioning.

Police are required to explain these rights in clear language before custodial interrogation. This warning gives people the ability to knowingly and voluntarily waive their right against self-incrimination.

Of course, the IRS is not the police. But Miranda can still come into play in IRS criminal investigations, as we’ll explain next.

When Do Your Miranda Rights Apply with the IRS?

Normal IRS audits are civil proceedings–but the IRS also conducts criminal investigations through its Criminal Investigation (CI) division. CI investigates potential criminal violations of the tax code, including tax evasion, filing false returns, and identity theft.

In criminal investigations, the IRS is required to read you your Miranda rights before a “custodial interrogation.” This usually happens the first time a CI special agent questions you in person. The agent will explain that you’re the subject of a criminal investigation, and read you a version of the Miranda warnings before any questioning starts.

But when exactly does Miranda apply in this context? There are two key requirements:

1. Custody: This doesn’t necessarily mean you’re under arrest or handcuffed. But if a reasonable person wouldn’t feel free to leave or terminate the interview, it’s considered custodial questioning.
2. Interrogation: Any express questioning or actions/statements by the IRS reasonably likely to elicit an incriminating response can be seen as interrogation.

So in practice, Miranda rights usually kick in during the first in-person interview with the CI special agent. However, the IRS could still try to claim an earlier audit interview was non-custodial and therefore Miranda didn’t apply yet.

Some key things to keep in mind:

• Miranda only applies to criminal investigations, not normal civil audits.
• Phone interviews are less likely to be seen as custodial questioning.
• Miranda may apply again if you’re interviewed a second time or after a long break.
• Invoking your right to an attorney doesn’t mean you can avoid meeting with the IRS. But it does mean they can’t question you without your lawyer present.

Protecting Your Rights in an IRS Criminal Investigation

If you’re the subject of an IRS criminal investigation, it’s essential to understand and assert your rights. Here are some key things you can do:

1. Don’t ignore requests to meet with CI. If you refuse, the IRS can issue a summons to compel you to appear. It’s better to willingly cooperate on your own terms.
2. Hire a lawyer ASAP. An experienced criminal tax attorney can ensure your rights are protected every step of the way.
3. Record interactions with the IRS. Get written records of all communications, and record in-person meetings if possible.
4. Don’t answer questions without your lawyer present. Be polite, but firm in insisting your attorney be present for any substantive discussions.
5. Clearly invoke your Miranda rights. Say you won’t answer questions without an attorney present if you’re unsure whether your rights apply.
6. Don’t lie or mislead investigators. That can lead to additional charges like obstruction of justice.

Following this advice will help ensure investigators don’t cut corners with your Miranda protections. Don’t be afraid to speak up! Silence or vagueness can’t be used against you in court.

Real Cases Where Miranda Came Into Play

To understand how Miranda applies in IRS criminal cases, let’s look at a few real-world examples:

United States v. Rutherford (2004)

In this case, the taxpayer was interviewed by IRS agents multiple times as part of an audit. He was later indicted for tax evasion. He tried to suppress the audit statements, claiming he hadn’t been given Miranda warnings.

But the court found the early interviews were non-custodial–he voluntarily met with agents at his own office and was told he could leave at any time. Miranda only applied later when he was formally interviewed by a CI special agent.

United States v. Schmidt (2018)

Here, the defendant met with IRS agents at his accountant’s office to discuss his tax returns. When he revealed incriminating information, the agents read him his Miranda rights. He then asked for an attorney, but the agents kept questioning him in violation of Miranda.

The court suppressed his statements, finding the interview was custodial once he incriminated himself. The agents violated his rights by continuing to question him after he asked for a lawyer.

United States v. Grunewald (1991)

In this case, the taxpayer truthfully answered an IRS agent’s questions during an audit interview. Those answers were later used to criminally indict him for tax fraud. He tried to suppress the statements, arguing he should have received Miranda warnings.

But the court found the audit interview was non-custodial, and Miranda didn’t apply to those civil inquiries. This shows how the IRS can use voluntary audit statements in a later criminal case if Miranda wasn’t required at the time.

As you can see from these examples, the specific circumstances determine whether and when Miranda applies in IRS criminal cases. Consulting with an attorney is the best way to ensure your rights are protected.

The Bottom Line on Miranda and the IRS

Dealing with IRS criminal investigations can be intimidating and complex–especially understanding how your Miranda rights apply. While the IRS isn’t law enforcement, you still have important Fifth Amendment protections when questioned by CI agents.

Hopefully this overview has helped explain when and how your Miranda rights come into play with the IRS. The key is being aware of your rights, and working with an experienced attorney to ensure they are respected at every stage. With the right knowledge and preparation, you can get through an IRS criminal investigation while fully protecting yourself within the law.