5 Critical Mistakes to Avoid When Facing an IRS Criminal Tax Audit in 2026

The IRS is aggressively pursuing criminal tax audits in 2026, with a particular focus on targeting large accounts with the potential for significant recoveries. Along with back tax liability, taxpayers targeted in these audits can also face fines, prison time, and levies, liens, and other enforcement actions. As a result, when facing an IRS criminal tax audit, avoiding mistakes is critical. Learn more from Virginia criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

What Not to Do When Facing an IRS Criminal Tax Audit

When facing an IRS criminal tax audit, even seemingly minor mistakes can often have drastic consequences. With this in mind, here are five examples of potentially costly mistakes that targeted taxpayers should be careful to avoid:

1. Unnecessarily Disclosing Incriminating Information

A mistake we see far too often is targeted taxpayers disclosing incriminating information unnecessarily. Typically, taxpayers make this mistake because they either: (i) wrongly assume they don’t have anything to hide; or (ii) fail to take the necessary precautions to avoid unnecessary disclosures. In either scenario, once a taxpayer voluntarily provides incriminating information to the IRS, the IRS can use it to pursue criminal charges as warranted.

2. Destroying Potential Evidence

While targeted taxpayers need to be careful to avoid unnecessarily disclosing incriminating information, they also need to be careful not to destroy potential evidence. Not only can this raise red flags during an IRS criminal tax audit, but it can potentially lead to criminal charges regardless of any underlying tax-related culpability.

3. Failing to Comply with Subpoenas and Search Warrants When Required

In this same vein, targeted taxpayers must also be careful to comply with subpoenas and search warrants to the extent required by law. Failing to comply with a federal subpoena or search warrant can have serious consequences as well. If a targeted taxpayer has grounds to challenge a subpoena or search warrant, the taxpayer must do so through the appropriate formal legal means.

4. Overlooking Potential Grounds for Criminal Prosecution

IRS criminal tax audits can target an extremely wide range of tax-related and non-tax-related offenses. If you overlook potential grounds for criminal prosecution during the IRS’ audit, you could find yourself unexpectedly facing serious criminal allegations in federal court.

5. Overlooking Potential Defense Strategies

Along with overlooking potential grounds for criminal prosecution, overlooking potential defense strategies is an all-too-common mistake as well. When facing an IRS criminal tax audit, it is critical to assess all potential defense strategies, from focusing on shortcomings in the IRS’ case to targeting a plea bargain that avoids an indictment.

Schedule a Confidential Consultation with Virginia Criminal Tax Attorney Kevin E. Thorn

If you need more information on protecting yourself during an IRS criminal tax audit, we encourage you to contact us promptly. To schedule a confidential consultation with Virginia criminal tax attorney Kevin E. Thorn as soon as possible, call 703-752-3752 or tell us how we can reach you online now.