How criminal tax cases are built
IRS Criminal Investigation conducts the investigation, and prosecution decisions are made by the Justice Department. The office responsible for criminal tax prosecutions was reorganized recently, with the former Tax Division dissolved and that work moved into a fraud enforcement division, so the specific office involved should be confirmed. Cases often grow out of civil audits, bank reports, informants, or other investigations. The central question in most criminal tax cases is willfulness, meaning whether the person knew of the legal duty and intentionally violated it, rather than simply whether tax was underpaid. Honest mistakes and negligence, however costly, are generally handled on the civil side.
Protecting yourself while the case develops
You can decline an interview with agents, and it is wise to speak with a lawyer before saying anything, because statements made in that setting often become central evidence. Knowingly false statements to federal agents are a separate crime, which is another reason to let counsel manage communication. Communications with your accountant are not protected by privilege in a criminal case, so avoid discussing the investigation with them unless your lawyer has set up an arrangement for that purpose. Preserve records rather than altering or discarding anything. Do not file amended returns on your own without advice.
From investigation to courtroom
Many criminal tax matters are resolved before trial, but a defense starts with understanding the government's theory and evidence. Early on we work out whether you are a subject, a target, or a witness, and whether there is room to engage with prosecutors before charges are filed. If an indictment follows, the case proceeds in federal court with discovery, motions, and either trial or plea discussions. We also keep the civil tax consequences in view, since they continue alongside any criminal case and can be significant on their own.
