What You Must Know About IRS Criminal Prosecutions

You'll know you have IRS issues if you open your door and the person is an agent from the Criminal Investigation Division or CID. The CID is the IRS police department and consists of 2 sections ý Special Enforcement and General Enforcement. Special Enforcement investigates organized crime, drugs, and unions. Everything else such as common taxpayers are General Enforcement's jurisdiction.

If the CID is on your door, you or someone you know is under criminal investigation. The inquiries can take a long time to finish and include interviewing friends, family, neighbors, business associates, bankers, staff, accountants, insurance agents, etc. Don't attempt to lie if the CID talks to you about someone you know. Be careful as anything you say could lead them to you, especially if they're investigating your business partner. Approximately 80% of tax crimes are prosecuted because of the CID.

If you are the subject of the investigation, call your lawyer right away and don't speak to the CID. Your lawyer can find out what's happening by calling the IRS.

The CID will recommend whether you ought to be prosecuted or not after the investigation. It depends on the merit of the case against you. They must be able to prove you are guilty beyond a reasonable doubt, so if you have some things in your favor and a good attorney, you may get civil penalties instead.

Failure to file a tax return, tax evasion, or filing a fraudulent tax return will get the CID on your case.

If the CID moves forward with prosecution, the Justice Department takes over. It'll be decided if the IRS should seek a federal grand jury indictment against you after an Assistant U.S. Attorney General studies your case. If you're formally charged, you will either be arrested or ordered to face a federal judge. At this point, you will have the opportunity to plead guilty or not guilty. You will have to post bail or you may be released on your own recognizance.

The case will go to trial when you plead not guilty. This can be by a jury or a judge alone. You have to be proven by the IRS that you are guilty of the crime beyond a reasonable doubt. You'll go to a federal prison if convicted of a tax crime. If you end up reaching a plea bargain you'll just be fined and/or placed on probation, given home confinement, or sent to a safe house. Prosecution costs might have to be shouldered by you. Two years is average for a tax crime.

Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com