How a Criminal Tax Attorney Can Protect Your Rights During IRS Investigations
Learn how a criminal tax lawyer can protect your rights and defend you during IRS investigations, and what triggers an IRS investigation.
When talking about a criminal tax lawyer, what comes to your mind first is Who they are and what they do?
Let’s go into it.
A criminal tax attorney specializes in defending individuals and businesses facing investigations or prosecutions for tax-related crimes.
They handle cases involving tax fraud, evasion, and other tax law violations, working to minimize penalties and secure favorable outcomes for their clients.
At Thorgood Law Firm, we have been practicing tax law since 1998, giving us over 25 years of experience in representing clients before the IRS and state tax authorities.
Our attorneys have collectively handled tax matters for “more than two decades”.
We are New York-based IRS attorneys dedicated to bringing legal counsel to taxpayers across the United States, and our services offered include:
- Sales Tax Audit
- Payroll Tax
- Income Tax Audit
- Criminal Tax
- Offer In Compromise
- Liens, Levies & Wage Garnishments
- Unfiled Tax Returns
- Penalty Abatements
- Installment Payments
- Innocent Spouse Relief.
Let’s discuss what triggers an IRS criminal investigation. The IRS-CI uses various programs to detect signs of financial wrongdoing.
They track everything, from tax crimes using legal sources to hidden financial crimes involving illegal sources. And they are:
1. Large, Unreported Income
When individuals or businesses fail to report substantial income, it raises a significant red flag for the IRS.
This method could involve someone with multiple bank accounts that receive large amounts of unexplained deposits, or a business that reports lower revenues despite visible high customer traffic and expensive operations.
IRS-CI investigates these discrepancies by comparing the reported income against the taxpayer’s lifestyle, property holdings, and other financial indicators.
IRS-CI uses data analysis, bank records, and other financial documents to trace and confirm unreported income.
This thorough approach helps uncover tax evasion schemes and ensure that everyone pays their fair share to support public services.
2. Suspicious Deductions or Credits
When taxpayers claim unusually high deductions or credits that are inconsistent with their income level or occupational sector, it prompts IRS-CI to take a closer look.
This process helps ensure that deductions and credits are rightfully claimed and prevents individuals from manipulating tax laws to avoid paying their due amounts.
3. Willful Tax Evasion
This act involves individuals or businesses intentionally failing to pay their full taxes.
It includes actions such as hiding income, claiming excessive deductions, or failing to file tax returns.
The IRS-CI investigates these cases by reviewing financial records and tracing money transfers.
They also use tips to uncover hidden assets or unreported income.
For example, a business owner may use two different sets of books to mislead about their earnings, or an individual might hide money in overseas accounts to avoid taxes.
These investigations are thorough and aimed at catching those who try to cheat the tax system. Such cases can result in severe penalties.
4. Tax Fraud
Tax fraud involves deliberately falsifying information on tax returns to reduce the amount of taxes owed.
This medium includes reporting less income than earned. It could also mean claiming deductions or credits to which the taxpayer is not entitled, or failing to report cash transactions.
IRS-CI is vigilant in detecting such fraudulent activities. They analyze gaps between reported income and lifestyle. They check documents for authenticity.
They share information and resources. This approach enhances their ability to find and prosecute tax fraud well.
This strict approach maintains the integrity of the tax system. It ensures that everyone pays a fair share. Such efforts also deter others.
They stop them from attempting similar frauds. They are aware of the legal and financial risks associated with their actions.
5. High-Risk Occupations or Industries
Specific jobs and industries are more likely to be scrutinized by the IRS-CI because they have a history of tax-related issues.
These include cash-based businesses, such as restaurants, salons, or construction companies, where it’s easier to hide income.
IRS-CI pays extra attention to these areas. They review records, verify that reported earnings align with the size of the business, and sometimes compare them with those of similar companies.
This focus helps identify those who may be avoiding their tax duties and encourages everyone in these high-risk areas to be honest with their tax obligations.
6. Informant Tips
Tips from informants play a crucial role in IRS-CI investigations. These tips often come from insiders who have direct knowledge of wrongdoing, such as employees, ex-partners, or competitors.
IRS-CI takes these tips seriously because they can provide specific details that are hard to obtain through standard audits.
When IRS-CI receives such information, it starts a thorough review to verify the claims. This process might include interviews, document checks, and surveillance.
By acting on reliable informant tips, IRS-CI can uncover hidden tax evasion schemes, ensuring that all are paying their fair share of taxes.
7. Patterns of Noncompliance
IRS-CI closely monitors taxpayers who repeatedly fail to comply with tax laws.
This approach includes individuals or businesses that frequently file late, consistently underreport their income, or repeatedly fail to file tax returns.
These patterns of noncompliance often indicate a deeper issue than simple oversight.
IRS-CI uses a series of checks and balances, including comparing past behavior and conducting detailed audits, to identify and address these chronic issues.
Acting against repeat offenders not only recovers lost tax revenue but also serves as a deterrent to others who might consider similar tactics.
In Conclusion: The Best Criminal Tax Lawyer To Defend You During an IRS Investigation
Our attorneys have experience defending against a range of government agencies, with a particular focus on the IRS.
Well-versed in high-stakes criminal tax defense, our attorneys are trial-ready and battle-tested.
We have over 25 years of experience working with IRS agents and understanding their processes and procedures.
We can negotiate settlements, reduced penalties, or alternative resolutions, such as installment agreements, which may prevent criminal charges from being filed.
Looking for the best criminal tax attorney in New York? Look no further. We at Thorgood Law Firm in New York are ready when you are.
