During an ongoing criminal investigation, an experienced attorney can work aggressively to defend your rights, limit the scope and character of the investigation, and help to secure a favorable outcome.  In the best-case scenario, the optimal outcome is that the investigation will be discontinued, with no criminal charges proposed, and no referral made to the U.S. Department of Justice for prosecution.

If the potential charges are so strong that, despite the efforts of the criminal defense attorney, you are charged with a tax crime, the actions described above may still serve to limit the damage caused by the DOJ referral and eventual prosecution.  This serves to reduce the potential sentence, as well as the criminal and civil fines to be imposed.

An “eggshell audit” is a tax audit that carries a high risk of escalating to a criminal investigation. It’s called an eggshell audit because it can feel like you’re walking on eggshells.

During an eggshell audit, a criminal tax lawyer can help:

• Identify red flags and create a strategy to get you through the audit safely
• Prevent the audit from expanding to include additional tax years
• Shield you from contact with the IRS examiner so you don’t accidentally say something incriminating
• Keep the examiner out of your home or workplace
• Negotiate with the IRS

Tax evasion and tax fraud are separate criminal tax charges that often go hand in hand. Both charges can be considered felonies. 

If you’re convicted for tax evasion or tax fraud, penalties can include fines of $100,000 and up to 5 years in prison.

If you have concerns about tax evasion or tax fraud, it’s best to contact an attorney before the IRS opens an investigation. This gives you the best chance of reducing penalties and avoiding jail. However, our skilled tax fraud attorneys can help at any stage.

The Voluntary Disclosure Program (VDP) is an amnesty program that can help you avoid criminal charges for tax crimes, such as intentionally underreporting income. 

The Voluntary Disclosure Program is no walk in the park, but it could be your lifeline to get back on track. If your application is accepted, you’ll have to pay your back taxes, interest, and penalties. In exchange, you’ll have a significantly decreased risk of receiving criminal tax charges.

Formerly known as the OVDP, this program was originally designed for taxpayers who failed to file the FBAR and other offshore disclosure forms. However, you can also use the Voluntary Disclosure Program for other types of unreported income. The IRS recently expanded the program to include unreported cryptocurrency.

The VDP may be an option if:

• You have funds from legal sources that you’ve misreported or failed to report in the past
• You have foreign bank accounts or assets that have not been disclosed
• You have cryptocurrency income that hasn’t been reported on your tax returns
• You’ve falsely claimed large amounts of deductions or tax credits in the past
• You aren’t currently under investigation

Given the risk of criminal tax charges, it’s wise to hire a professional to guide you through the IRS Voluntary Disclosure Program. Call Gordon Law at (847) 580-1279 to schedule a consultation.

If you filed joint tax returns with a spouse who is under investigation for tax fraud, you could qualify for Innocent Spouse Relief. If your application is successful, you’ll be fully or partially relieved of any payments on taxes owed, penalties and fees, and interest, as well as being protected from criminal prosecution.

However, a single misstep in the process can permanently disqualify you from Innocent Spouse Relief. Contact the experienced tax attorneys at Gordon Law for a consultation and see if this option is right for you.

Tax preparers can be investigated by the IRS for tax crimes if they file false information on their customers’ tax returns. For example, claiming inflated deductions to increase clients’ tax refunds is a common offense.

Investigations against Enrolled Agents, CPAs, and other tax professionals are extremely serious. You could face severe fines, criminal charges, and potentially lose your practice.

Gordon Law has experience defending tax preparers during investigations by the IRS and Illinois Department of Revenue. Call (847) 580-1279 today to schedule a confidential consultation.