IRS Criminal Prosecutions
You’ll know you have IRS issues if you open your door and the person visiting is a special agent from the Criminal Investigation Division or CID. Special Enforcement and General Enforcement are 2 sections of the IRS police department. Special Enforcement has responsibility over drugs, organized crime, and unions. Everything else including common taxpayers are General Enforcement’s responsibility.
If the CID contacts you, it doesn’t only mean that you are the one under investigation. It could be a friend, relative, neighbor, colleague, partner, employee, or anyone you know. Don’t lie and be wary with dealing with the CID as 80% of all crimes are prosecuted through their thorough investigation and you may inadvertently lead them back to you.
If you are the subject of the investigation, call your lawyer right away and do not talk to the CID. Your lawyer can see what’s happening by calling the IRS.
If the CID can prove your guilt beyond a reasonable doubt, you can be prosecuted. If not, you will get away with civil penalties.
Tax evasion, not filing a tax return, or filing a fraudulent tax return are the primary reasons why you might be investigated.
The Justice Department takes over if the CID recommends prosecution. An Assistant U.S. Attorney General will study the case and ultimately decide if the IRS must seek an indictment from a federal grand jury against you. When you’re formally charged, you will either be arrested or ordered to face a federal judge. You have the chance to plead not guilty or guilty. You might have to post bail or you may be released on your own recognizance.
If you plead not guilty, you will eventually have a trial. It may be with a judge or a full jury. You have to be proven by the IRS that you’re guilty of the crime beyond a reasonable doubt. You will be incarcerated in a federal prison if convicted of a tax crime. A plea bargain can result in a fine and/or probation or house arrest. You might also have to pay for the cost of prosecuting you. Two years is average for a tax crime.
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