The Internal Revenue Service recently issued its annual report on its criminal investigations. The agency notes that it launched 3,853 criminal investigations in fiscal year 2015 and recommends prosecution in 3,289 cases. The IRS says it obtained convictions in 2,879 cases and that 80 percent of those who were prosecuted wound up being sentenced to prison.
It seems likely that the agency will see declining numbers in investigations and prosecutions in 2016. After all, the IRS notes that its total of special agents dropped 6 percent in fiscal 2015 and that its professional staff population plunged even more dramatically, by 8.8 percent. Of course, to those in Cleveland who will face tax-related criminal charges in the coming year, those statistics will provide little comfort.
There is little doubt that while the numbers of investigations might dwindle, those who face charges will face the possibility of harsh consequences upon conviction, often including substantial penalties, interest and back taxes. In worst-case scenarios, the possibility of prison will also loom large.
The IRS says in its report that its investigations of general tax fraud "are the backbone" of its enforcement program. These are the investigations into alleged violations by taxpayers who "through willful non-compliance" fail to file their tax returns, claim false deductions or credits, hide assets, under-report income, keep two sets of books, claim personal expenses as business deductions, and so on.
When criminal charges are a possibility, it makes sense to contact a tax attorney experienced in not only litigation, but criminal cases as well. The attorneys at Robert J. Fedor, Esq., L.L.C. prepare clients to get into tax compliance and also help protect clients’ rights and interests in negotiations that can resolve matters before indictment.
If charges have been filed, we provide vigorous, effective defense in district court.
