dreamstime_xxl_30923193

Our country’s tax system is often viewed as complex and intimidating. Here at JDKatz, we wholeheartedly agree! Our tax advice experts are on staff to help our clients navigate the numerous roadblocks and pitfalls that can ensnare the average citizen. Many Americans are simply misinformed or commit tax errors. If you fall into this category and are in need of a tax attorney in Maryland or the D.C. area, we can help! Our focus on client satisfaction drives us to do everything in our power to help you. This can be especially evident when facing a tax fraud investigation. As we said before, many people are simply ignorant of tax laws and therefore do not abide by them. However, ignorance of the law is no excuse for breaking it round these parts. Our attorneys can help ease the stress of tax evasion penalties!

What Are Criminal Investigations?

The Internal Revenue Service (IRS) employs a division of specialists that investigate violations in various sections of our Internal Revenue Code. These agents are on staff to look into possible cases of fraud in order to maintain the integrity and efficacy of our tax system.

How Does It Start?

Tax investigations are initiated once pertinent information is found about a possible case of tax evasion or fraud. This information typically originates from three sources, including:

  • Internal auditing. A revenue agent or officer can come across suspicious information and open an investigation at any time.
  • Public leads. The IRS typically receives a consistent flow of tips and information from the greater public. This information is enough to open a new investigation into a person or entity.
  • Other law entities. When another law enforcement agency investigates an individual for any number of reasons, their tax accounts may be flagged as suspicious. Once this information is turned over to the IRS, the investigation begins.

Then What Happens?

At the onset, special agents will collect and analyze any relevant information to determine if there is enough evidence to continue the investigation. Their supervisors will make the final call on whether or not to continue the process. The agent in charge can then initiate a criminal investigation, which is now officially the start of the pending investigation.

Once a criminal investigation is initiated, the assigned special agent works to collect as much evidence and factual information as possible to build a case showing criminal actions took place. At this phase, agents can utilize several methods for collecting this essential information. The IRS’ internal tax fraud attorneys are used during this process to ensure that all appropriate steps are taken and that everything was done in accordance with the law.

The IRS is in place to ensure that all American citizens are doing their part in keeping up to speed with their taxes. Anyone committing any degree of tax evasion can eventually expect contact from a special agent about their IRS fraud. This chain of events is no laughing matter and can end up being very costly for you! If you’re in need of a Maryland tax attorney, JDKatz is here to help. Beyond tax preparation and advice, we specialize in foreign accounts and tax defense cases. Contact us today for a free consultation!