Responding to an IRS Civil Investigative Demand (Summons)
So your probably staring at this IRS summons demanding every financial record you’ve touched in the last six years and your hands are literaly shaking. Maybe they think you underreported income. Maybe someone reported you for tax fraud. Or maybe your just caught up in there latest enforcement initiative. Look, we get it. Your ABSOLUTELY PANICKED. And you should be! Because IRS Criminal Investigation has a 90% conviction rate and tax fraud means FEDERAL PRISON!
What Is an IRS Summons and Why Is It So Powerful?
Let me explain the nuclear weapon your facing. The IRS has incredibly broad summons authority to demand documents, records, and testimony about ANY matter “relevant or material” to there investigation. And here’s what’s terrifying – they define “relevant” so broadly that literally EVERYTHING in your financial life is fair game!
Unlike a regular audit notice, an IRS summons means they think something criminal is happening. This isn’t about adjusting your tax bill anymore – its about building a case to put you in federal prison! The summons is usualy the first step in what becomes a criminal investigation by IRS Criminal Investigation Division (CI).
The really scary part? The IRS can issue summonses to ANYONE – your bank, your accountant, your business partners, your employees, even your family members! They’re building a complete picture of your financial life from every angle!
How Bad Can IRS Criminal Penalties Really Get?
Sit down before reading this because the penalties will make you physically ill. Tax evasion under 26 USC § 7201 carries up to 5 years in federal prison and $250,000 in fines ($500,000 for corporations). But that’s PER COUNT!
Need Help With Your Case?
Don't face criminal charges alone. Our experienced defense attorneys are ready to fight for your rights and freedom.
- 100% Confidential
- Response Within 1 Hour
- No Obligation Consultation
Or call us directly:
(212) 300-5196Filing false returns (26 USC § 7206) adds another 3 years per return! Failure to file returns? Another 1 year per return! Conspiracy to defraud the IRS? 5 more years! We’ve seen taxpayers facing 20-30 years in prison for what started as “simple” tax disputes!
But here’s what’s really devastating – the financial destruction! Criminal tax convictions mean paying back taxes, interest, civil fraud penalties (75% of tax owed), criminal fines, prosecution costs, and asset forfeiture! One client owed $500,000 in taxes but after criminal conviction faced $3 MILLION in total liability!
What Triggers IRS Criminal Investigations?
Your probably wondering “Why me? Everyone cheats on taxes!” Let me tell you what puts people in CI’s crosshairs:
Todd Spodek
Lead Attorney & Founder
Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.
Information from civil audits gets referred to Criminal Investigation when auditors find “badges of fraud” – unreported income, false deductions, altered documents, or hidden assets. Whistleblowers get up to 30% of what IRS collects – your ex-spouse, business partner, or employee can get rich by destroying you!
You received an IRS summons demanding six years of bank statements, tax returns, and business records from your freelance consulting work. A revenue agent showed up at your accountant's office requesting the same documents, and now you're unsure whether this is still a civil audit or has crossed into a criminal investigation.
Can I refuse to comply with the IRS summons, and how do I know if my case has been referred for criminal prosecution?
Under IRC § 7602, the IRS has broad authority to issue administrative summonses during civil examinations, but under the Powell factors established in United States v. Powell (1964), the summons must be issued for a legitimate purpose and the information sought must be relevant to that purpose. If your case has been referred to IRS Criminal Investigation (CI), the IRS loses its authority to issue civil summonses under the doctrine established in United States v. LaSalle National Bank (1978) — meaning any summons issued solely to build a criminal case is unenforceable. You should not ignore the summons, but your attorney can file a motion to quash under IRC § 7609(b) if there are grounds to believe the investigation has become criminal in nature. Retaining counsel immediately is critical because anything you produce in response to a civil summons can and will be used against you if the case is later referred for prosecution.
This is general information only. Contact us for advice specific to your situation.
Bank Secrecy Act reports trigger investigations – deposits over $10,000, suspicious transactions, or structuring to avoid reporting. Even legitimate business activity gets flagged! Related civil litigation exposes tax issues – divorce proceedings, business disputes, bankruptcy filings all get IRS attention. We’ve seen criminal investigations start from routine traffic stops where cops found business receipts!
