1. What Should You Do When IRS Criminal Investigation Contacts You?
Start with what the agent asked you to do. A call requesting an interview raises different questions from a written demand for records. The sender, document type, and response date help an attorney determine what needs attention first.
Identify Who Contacted You and Why
IRS revenue agents generally examine returns for civil tax compliance. Special agents with IRS Criminal Investigation (IRS-CI) investigate suspected crimes, including matters referred after a civil examination uncovers possible fraud. If an agent calls, write down the agent’s name, the date, and what the agent requested. An attorney can verify the contact and assess whether you or your business may face criminal exposure.
Distinguish an Interview Request from a Summons or Subpoena
You can generally decline a voluntary interview. An IRS summons or grand jury subpoena may require testimony, records, or both. A criminal tax defense attorney can check who issued the demand, who must respond, and whether any objections or privileges apply. Under 26 U.S.C. § 7602(d), the IRS cannot issue an administrative summons or start an action to enforce one with respect to a person while a qualifying Justice Department referral is in effect for that person.
Check the Deadline If the IRS Summons a Third Party
The IRS can seek records directly from an accountant, and some third-party summonses are exempt from notice. If you are entitled to notice under 26 U.S.C. § 7609, you generally have 20 days after notice is given to start a court proceeding to quash the summons. A grand jury subpoena follows different rules.
2. What Records Will a Tax Fraud Defense Attorney Review?
A return shows what the taxpayer reported. The records behind it can show how the figures were calculated, what the preparer was told, and who approved the filing. Those details help an attorney assess whether a discrepancy reflects a mistake, a good-faith reporting position, or evidence of an intentional violation.
Preserve Records That Show How the Return Was Prepared
Keep filed returns, draft schedules, bank statements, ledgers, and communications with the preparer. Bank records can help trace a disputed payment. Drafts and dated messages can show when a figure changed and who supplied it. Preserve original files and related messages before correcting the books or filing an amended return.
Determine Who the Attorney Represents
A company and its owner may have different interests when investigators ask who approved a filing or directed a payment. The attorney should identify the client before interviewing officers or employees and assess whether anyone needs separate representation. Attorney-client privilege generally protects confidential communications for legal advice. Giving an attorney existing business records does not by itself make them privileged. The limited tax practitioner privilege under 26 U.S.C. § 7525 applies only in specified noncriminal federal tax matters.
3. Can an Attorney Address the Investigation before Charges Are Filed?
An attorney can respond to investigative demands and assess whether to present records or legal arguments before prosecutors make a charging decision. IRS-CI can recommend prosecution, and the Department of Justice decides whether to pursue federal charges. A civil tax adjustment or payment does not, by itself, resolve criminal exposure.
Check Whether Voluntary Disclosure Is Still Available
The IRS Voluntary Disclosure Practice requires a truthful, timely, and complete disclosure through its designated process. Timing depends on whether the IRS has already begun a civil examination or criminal investigation, received third-party information alerting it to the noncompliance, or obtained directly related information through a criminal enforcement action. An attorney can assess IRS voluntary disclosure eligibility before you file corrected returns. Participation does not guarantee immunity.
4. What Must Federal Prosecutors Prove in a Tax Fraud Case?
“Tax fraud” can describe several federal offenses. The specific charge determines what prosecutors must prove beyond a reasonable doubt. A California civil fraud claim follows separate state-law rules.
Tax Evasion and False Tax Returns
For tax evasion under 26 U.S.C. § 7201, prosecutors must prove tax was due, the defendant acted willfully, and the defendant took an affirmative step to evade assessment or payment. For a false return under 26 U.S.C. § 7206(1), prosecutors must prove the defendant willfully signed and filed a return under penalties of perjury knowing it was false about a material matter. A false-return charge can be brought even if no additional tax is due. The maximum prison terms are five years for tax evasion and three years for a false return under these provisions.
Federal Court and the Scope of Representation
Federal criminal tax cases with proper venue in the Southern District of California may proceed in U.S. District Court in San Diego. Before retaining an attorney, confirm whether the engagement covers the investigation only or also includes court appearances and defense after charges are filed. Ask how fees are billed and which services require a separate agreement.
5. Request an IRS Tax Fraud Case Review
If an IRS special agent has contacted you or your business, contact SJKP to discuss what the agent requested and any stated deadline. Have the letter, summons, subpoena, or notes from the call ready so the attorney can identify what requires a response and discuss the scope of representation.
06 Nov, 2026
