Tax Fraud / IRS Defense
Defense against IRS criminal investigations and federal tax fraud prosecutions.
Understanding Tax Fraud / IRS Defense
Federal tax crimes are investigated by IRS Criminal Investigation (CI), one of the most effective federal law enforcement agencies. Tax fraud, tax evasion, filing false returns, and failure to file are all federal offenses that can result in significant prison sentences and financial penalties. The IRS has made tax fraud enforcement a priority, and convictions are obtained in over 90% of cases that go to trial.
Common Federal Tax Offenses
The most commonly charged federal tax crimes include tax evasion (26 U.S.C. Section 7201), filing false returns (26 U.S.C. Section 7206), failure to file tax returns (26 U.S.C. Section 7203), and tax fraud conspiracy. Tax evasion, the most serious charge, requires proof that the defendant willfully attempted to evade or defeat a tax obligation through affirmative acts of evasion, such as concealing income, overstating deductions, maintaining double books, or using nominee accounts. The willfulness element requires proof that the defendant knew of the tax obligation and intentionally violated it.
The IRS Criminal Investigation Process
IRS CI investigations typically begin with a referral from a revenue agent conducting a civil audit, a Suspicious Activity Report from a financial institution, or information from a cooperating witness. The investigation progresses through distinct phases, culminating in a recommendation to the DOJ Tax Division for prosecution. The IRS publishes detailed guidance (the Criminal Investigation Handbook) governing how these investigations are conducted, and violations of these procedures can be used in the defense.
Defense Strategies for Tax Cases
Tax fraud defense centers on the willfulness element. The government must prove that the defendant acted knowingly and intentionally, not merely negligently or through honest mistake. Our attorneys develop defense strategies that may include demonstrating reliance on a tax professional, showing that errors were inadvertent, challenging the government’s calculation of tax loss, and presenting evidence that the defendant made good faith efforts to comply with tax obligations. We also explore the possibility of resolving the matter through civil penalties rather than criminal prosecution.
If you are under IRS criminal investigation, the stakes could not be higher. A federal tax conviction results in imprisonment, massive financial penalties, and permanent damage to your reputation. Contact our firm for immediate, confidential assistance.
Potential Penalties
| Offense Level | Penalties |
|---|---|
| Tax Evasion (26 USC 7201) | Up to 5 years imprisonment, $250,000 fine per count |
| Filing False Return (26 USC 7206) | Up to 3 years imprisonment, $250,000 fine per count |
| Failure to File (26 USC 7203) | Up to 1 year imprisonment per year of non-filing |
| Tax Fraud Conspiracy | Up to 5 years imprisonment, $250,000 fine |
Defense Strategies We Use
The Federal Criminal Process
Understanding what happens next is critical. Here is a step-by-step overview of the federal criminal process — and where an experienced attorney can make the biggest impact.
Investigation
Federal agencies (FBI, DEA, IRS) build a case. You may not know you're under investigation. Early attorney involvement can make a critical difference.
Grand Jury
A federal grand jury reviews evidence and decides whether to issue an indictment. This happens in secret — you won't be present.
Indictment
Formal charges are filed. The indictment outlines each count and the statutory penalties you face.
Arraignment
Your first court appearance. You enter a plea (typically not guilty), and bail conditions are set.
Discovery
Both sides exchange evidence. Your defense team reviews thousands of pages of government documents, wiretaps, and financial records.
Pre-Trial Motions
Critical phase where your attorneys file motions to suppress evidence, dismiss charges, or compel disclosure.
Plea Negotiations
Most federal cases resolve through plea agreements. Your attorney negotiates for reduced charges or sentencing concessions.
Trial
If no plea is reached, the case goes before a jury. Federal trials are typically shorter but more intense than state trials.
Sentencing
The judge considers the Federal Sentencing Guidelines, your criminal history, and mitigating factors to determine your sentence.
Appeal
If convicted, you have the right to appeal to the Circuit Court. Appeals focus on legal errors, not factual disputes.
Frequently Asked Questions
Todd Spodek in the Media
Watch our managing partner discuss criminal defense strategy on major news networks.
Sentencing Calculators for Tax Fraud / IRS Defense
Recent Articles: Tax Fraud / IRS Defense
Fighting Tax Fraud / IRS Defense Charges?
Don't face these serious charges alone. Our experienced attorneys are available 24/7 to discuss your case.
