Do Not Delay Getting Legal Assistance

The best way to avoid criminal prosecution is to get legal help as soon as possible. Criminal cases typically originate from IRS civil unit referring a case to the criminal division, which usually occurs when the civil unit finds what it thinks to be evidence of tax fraud. An initial fraud determination is made by an individual civil agent, but becomes less personalized and more investigated as it goes through the system. The longer you wait, the more time the IRS has to build a case against you.

If you are facing an IRS audit and your tax returns substantially overstate deductions or understate income, it is highly recommended that you cease all communication with your accountant and obtain legal representation. This is because any accountant-client privilege does not extend to criminal investigations, but the attorney-client privilege extends to all confidential communications and testimony from your lawyer may not be compelled during any proceeding.

If you are contacted by an IRS special agent, you have the right to counsel. Simply inform the agent that you are seeking legal counsel and then do not have further communication with that agent until you have retained an attorney. When your reputation and your freedom hang in the balance, trust an attorney to help you face the IRS.