The
Internal Revenue Service is not limited to civil enforcement
of the tax laws; it could impose criminal charges leading
to a conviction, fines and imprisonment.
If
an IRS Special Agent contacts you, this is an indication that
the Internal Revenue Service is conducting a criminal investigation.
You will be advised that you are not required to speak with
the Special Agent and that you may have an attorney present.
Take this advice. Politely ask the agent to leave and state
that you wish to consult an attorney. Likewise, if you are
currently under criminal investigation and have been cooperating
and talking with a Special Agent, stop cooperating immediately
and consult with an attorney.
If
your bank notifies you that the Criminal Investigation Division
of the IRS or the U.S. Attorney's Office is requesting copies
of your bank records, there is a high likelihood that you
and/or your company are under criminal investigation.
If
your accountant is subpoenaed to appear before the Grand Jury
and bring your records, a Federal Grand Jury is being utilized
to conduct a criminal investigation of you and/or your company.
The Grand Jury is gathering evidence at the request or referral
of the IRS or another government agency. Since conversations
with your accountant are not protected under "attorney-client
privilege," you should refrain from further discussion
with your accountant until you have engaged legal counsel.
If
you receive a notice from the IRS that one or more of your
previous tax years are being audited AND you know that the
returns contain either understatements of income or overstatements
of deductions, or both, you should refrain from further discussion
with your accountant until you have engaged legal counsel.
Although this is initially only a civil audit, Revenue Agents
are trained to be on the lookout for and refer fraud red flags
to the Criminal Investigation Division. Existing "accountant-client
privilege" does not extend to criminal investigations,
meaning that your accountant may be forced to provide details
to the Internal Revenue Service about your situation.
If
any of these events happen to you, you should immediately
engage the services of a tax attorney who can monitor and
respond appropriately at the earliest stage in a criminal
investigation, including obtaining copies of bank records
turned over to the IRS, quashing summons for information,
utilizing available legal privileges and defenses to limit
personal records turned over to a Grand Jury, and providing
the best responses to an auditor's questions and requests
for documents in a civil audit with criminal implications.
WE CAN HELP!
For
prompt evaluation of your case, we encourage you to click
here to register for our Tax Advisory Service. You
may also contact us using our toll-free number at 866.494.6829.
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