IRS special agents typically work for the criminal investigation arm of the IRS. Their job responsibilities include conducting audits, investigating criminal tax violations and cryptocurrency crime, gathering evidence for cases, investigating suspected money laundering, and more related to investigation and prosecution of tax crimes. Being contacted by an IRS special agent can be intimidating, but you don’t need to face them alone! Call the trusted Coronado tax crime defense attorneys at Silver Law, LLP, to discuss your legal options and obtain trusted representation.

Some individuals do not need to file a tax return each year. However, the majority of individuals and business owners will need to file a tax return in a timely fashion or face consequences. Unless it becomes a criminal conviction, you will not face jail or prison for failure to file taxes, but you will be assessed a Failure to File Penalty. In most cases, this penalty is 5% of their unpaid tax liability for each money that their return is late, up to 25%.

Tax avoidance is the legal process of lowering your overall tax obligation through careful transactions and planning. This can include utilizing tax incentives, deductions, charitable contributions, and other elements of financial planning, often under the advice of a Coronado tax attorney or other tax professional.

Tax evasion is a crime. In these cases, a taxpayer intentionally and willfully hides, omits, or falsifies information in order to reduce their tax liability. The intent is to deceive the IRS and lower their tax burden. Ultimately, whether an individual is prosecuted and the difference between tax avoidance and tax evasion may come down to whether the individual had fraudulent intent with their actions.

Individuals or businesses who are suspected of tax evasion may be subject to investigation from the criminal investigative branch of the IRS, known as IRS-CI. The special agents who work for this branch have authority to perform a wide variety of actions as they investigate and prosecute you for tax evasion. The IRS-CI aggressively prosecutes these cases and has a conviction rate of over 90%. If you’re found guilty of tax evasion, you may face 3-5 years in prison along with fines in excess of $200,000. Consult with an experienced Coronado tax evasion attorney immediately if you’re facing charges or suspect you are under IRS investigation.

If you’re under investigation from the IRS, you may notice multiple signs. IRS special agents may subpoena your bank records or accountant. Previous tax returns that you’ve filed may suddenly be audited, you may receive document or bank records requests. If you’ve already been working with an IRS agent, they may suddenly stop communicating with you or may begin asking questions about your intent. If you notice any of these signs of investigation, call the trusted Coronado tax crime defense lawyers for advice.

There are many reasons why individuals or businesses may seek assistance from a Coronado tax fraud attorney. Some of these situations include:

• You receive a notice from the IRS regarding an audit
• You want to contest or negotiate a tax bill
• Your unpaid taxes have been sent to collections
• You’re facing allegations of criminal tax activity
• You suspect you’re under IRS investigation
• Your spouse is facing criminal tax charges
• You need guidance on reporting international income or accounts
• You need guidance on how to report cryptocurrency
• You have any kind of tax dispute or controversy with the IRS

Although not everyone is required to file taxes each year, failure to file taxes when you’re required to do so can result in a variety of consequences. You’ll likely be subject to a Failure to File Penalty, which is generally 5% of your unpaid tax liability for each money that your return is late, up to 25%. If the IRS believes you are intentionally refusing to report income or hiding assets, you may be criminally prosecuted, which can result in years of prison and hefty fines. If you do not file your tax return, you will not be able to claim your tax return if you are owed one.

Tax attorneys and Certified Public Accountants (CPA) are similar and complementary, but different, professionals who assist taxpayers with their taxes, financial records, and financial planning. CPAs provide tax preparation services, as well as other financial services, such as assistance with payroll, bookkeeping, documentation, fraud prevention, help with the structure of your business, and offering budgeting advice. A tax attorney is a trained and experienced lawyer who can give legal advice on tax-related matters, provide representation in negotiation and litigation, and can draft legal documents on your behalf. If you’re facing an audit, IRS investigation, or charges of a tax crime, you’ll want to work with a Coronado tax attorney.

The short answer is no. Federal tax crimes—such as tax evasion or tax fraud—require the government to prove “willful intent” to deceive the IRS. Honest mistakes, like a simple math error or misunderstanding a complex tax form, are classified as tax negligence rather than a crime. However, while you won’t face prison time for honest oversight, the IRS can still penalize you with a harsh 20% accuracy-related civil fine.

A typical IRS criminal investigation takes anywhere from 12 to 24 months, though complex financial cases can drag on for several years. Unlike standard civil auditors who are pressured to close cases quickly, IRS Special Agents have the luxury of time. They spend hundreds of hours meticulously building a prosecutable case by subpoenaing bank records, interviewing your business associates, and tracing years of financial footprints.