How Do the Risks of IRS Audits and IRS CI Investigations Differ?

While IRS audits are civil in nature, IRS CI investigations are focused on gathering the evidence needed to substantiate criminal charges. With that said, audits can (and do) lead to criminal charges as well. In all cases, taxpayers that are at risk of facing criminal charges must build and execute a comprehensive defense strategy, and this starts with engaging an experienced Virginia criminal tax attorney.

The Internal Revenue Service (IRS) uses audits and investigations to uncover underpayments and other violations of the Internal Revenue Code. While audits are much more common, IRS Criminal Investigation (IRS CI) routinely targets both individual and corporate taxpayers, and we have seen the IRS place increased emphasis on criminal enforcement in recent years. Learn more from Virginia criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

When Does the IRS Launch an Investigation Instead of Opening an Audit?

The IRS will launch an investigation when it has reason to believe that a taxpayer has committed a criminal violation of the Internal Revenue Code or another federal statute. While the IRS focuses primarily on tax law enforcement, IRS CI conducts investigations targeting money laundering, drug crimes, procurement fraud, RICO violations, and a wide range of other federal crimes.

What Are the Risks of Facing an IRS CI Investigation?

The risks of facing an IRS CI investigation are substantial. Individual and corporate taxpayers can both face substantial fines (with increased fines applying to corporate taxpayers in most cases), and individual taxpayers can also face federal prison time. These are in addition to the practical, business, and professional consequences of a federal indictment or conviction.

How Can Taxpayers Protect Themselves When Facing Criminal Tax Investigations?

Taxpayers who are facing criminal investigations can protect themselves by engaging experienced defense counsel promptly. Since IRS CI can target a wide range of both tax-related and non-tax-related allegations, it is critical for targeted taxpayers to ensure that they have a comprehensive understanding of their exposure. An experienced criminal tax attorney should be able to help determine the scope of IRS CI’s investigation and promptly begin building and executing a strategic defense.

How Our Virginia Criminal Tax Attorneys Assist Clients During IRS CI Investigations

Our Virginia criminal tax attorneys provide proactive and strategic defense representation focused on preventing IRS CI investigations from leading to federal criminal indictments. If you are under investigation, we can help, but it is important that you contact us promptly. Once you do, we will arrange for you to speak with one of our attorneys in strict confidence as soon as possible; and, if you choose our law firm to represent you, we will get to work on your case right away.

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

To learn more about how we help individual and corporate taxpayers that are facing scrutiny from IRS CI, contact us today. Call 703-752-3752 or contact us confidentially online to request a confidential consultation with Virginia criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.