Allegations of conservation easement fraud can expose taxpayers to substantial penalties—including criminal penalties in some cases. The Internal Revenue Service (IRS) has recently begun prioritizing fraud in this area. Taxpayers who are facing investigations need to defend themselves effectively, while those who have received settlement letters under the IRS’ “time-limited” settlement program need to make informed decisions. This starts with hiring an experienced Virginia tax attorney.

The Internal Revenue Service (IRS) and U.S. Department of Justice (DOJ) are targeting small businesses, construction companies, and their executives in 2026. We have recently seen an increase in criminal tax fraud investigations targeting these taxpayers, with some leading to federal prosecution. As Virginia criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, avoiding prosecution in these cases requires an informed and strategic defense—and, for those who are not yet under investigation, proactively coming into compliance could be critical to avoiding unwanted scrutiny.

Businesses that have had their Employee Retention Credit (ERC) claims denied by the Internal Revenue Service (IRS) have various options for seeking the refunds they are owed. One of these options is to file a refund lawsuit in federal court. However, this is generally a last resort, and in most cases, it will be beneficial for businesses to first seek to resolve their disputed claims with the IRS or through its Independent Office of Appeals.

Federal investigations targeting fraud under the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) program continue to present substantial risks in 2026. The Internal Revenue Service (IRS) and U.S. Department of Justice (DOJ) are aggressively pursuing cases against individuals and companies suspected of submitting fraudulent PPP loan applications and ERC claims, and the DOJ recently announced multiple prosecutions involving more than $260 million in alleged pandemic-era fraud.

While willful tax law violations can expose U.S. taxpayers to criminal penalties, taxpayers may be able to avoid criminal prosecution by submitting a voluntary disclosure to the Internal Revenue Service (IRS). However, submitting a voluntary disclosure is a complex, multi-step process, and strict eligibility requirements apply. As a result, an informed and strategic approach is critical, and this starts with engaging experienced tax counsel. Learn more from Virginia tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group: