Few things strike fear like notice that the IRS is investigating you. An IRS criminal investigation may be centered on allegations of one or more federal financial crimes, including:
- Tax fraud
- Narcotics trafficking
- Money laundering
- Public corruption
- Healthcare fraud
- Identity theft
If you learn you are under investigation for a federal financial crime, you need a defense lawyer who understands federal criminal law and procedure, including the IRS criminal investigation process. The New Jersey federal criminal defense attorneys at the Law Offices of Jonathan F. Marshall have the experience and strategic defense thinking needed to protect your rights and freedom if you face charges filed by the IRS.
Our legal team is made up of former prosecutors and public defenders who have argued both sides of federal criminal cases in New Jersey. We are among the most capable of helping you because:
- We have selectively built one of the largest and most seasoned criminal defense law firms serving New Jersey. Our team has 11 highly skilled lawyers, a large legal staff, and extensive resources to support our c We are ready to dedicate the time, energy, and level of detailed planning into an IRS case that other firms can’t.
- Our attorneys bring knowledge and skills gained through over 200 years of combined experience to your case. We have earned our reputation for crafting strategic criminal defense solutions that keep clients out of court. We’re also known for presenting strong and persuasive cases to judges and juries when a trial cannot be avoided.
- Our experience has allowed us to develop professional relationships in U.S. District Court courtrooms in Trenton, Camden, and Newark. These connections enable us to negotiate and obtain reduced charges, lighter fines and sentences, and other agreements for our clients’ benefit.
- Reviews from previous clients we have helped establish the high level of skill and knowledge our attorneys offer. One client says, “They represented me fairly, accurately, and worked hard on these cases to get me ideal results.”
Act now to engage qualified legal help if you are under IRS investigation or indictment. IRS Criminal Investigation (IRS-CI) special agents are the only federal law enforcement agents who investigate violations of the Internal Revenue Code – and they claim a conviction rate of more than 90 percent. Call or fill out our online form today to set up a free and confidential legal consultation with an experienced federal criminal defense attorney from the Law Offices of Jonathan F. Marshall.
What Triggers an IRS Criminal Investigation?
The Internal Revenue Service (IRS) is the U.S. government agency responsible for collecting federal taxes and enforcing tax laws. The IRS audits individual and corporate taxpayers randomly or after detecting irregularities in tax returns.
An IRS criminal investigation may be initiated when an agent or analyst detects or is informed of possible fraud. Agency officials may receive incriminating information from within the IRS, such as during an audit, from the public, or from investigations conducted by other law enforcement agencies or U.S. Attorneys’ offices nationwide.
What Is the Difference Between an IRS Criminal Investigation and a Tax Audit?
In a criminal investigation, the IRS tries to develop a case that the U.S. Attorney’s Office will prosecute. A tax audit is a civil investigation focused on whether a taxpayer has calculated their tax liability (what’s owed) correctly.
A taxpayer who is being audited should not intentionally omit or misrepresent facts when questioned by an IRS agent. A civil audit may escalate if the agent finds irregularities that indicate potential fraud, such as false statements, unreported income, too many deductions, or illegal deductions.
What Is the IRS Criminal Investigation Process?
There are several steps in the IRS criminal investigation process:
Preliminary Analysis and Initiating Criminal Investigation
If an agent believes a taxpayer has committed fraud, they can refer the case to a “special agent.” Special agents conduct the “primary investigation” to determine whether criminal tax fraud or some other financial crime may have occurred.
An investigation is passed up the chain of command for review. If warranted, it’s passed to the special agent’s front-line supervisor and then the “special agent in charge,” who may initiate a “subject criminal investigation.” This directs the special agent to get any evidence needed to establish criminal activity.
The Investigation
A special agent’s investigation may require:
- Interviewing witnesses
- Performing surveillance
- Executing search warrants
- Studying evidence forensically
- Using subpoenas to get bank records
- Reviewing a variety of financial data
If a pattern of fraud over multiple years is detected, the investigators will dig as far back into the suspect’s history as possible to compile evidence.
Recommendations for Prosecution
Eventually, the special agent and their supervisors will either decide that there’s enough evidence to support the recommendation of prosecution or that the investigation should be discontinued.
When prosecution is recommended, the special agent’s report and recommendation is reviewed and forwarded to the presiding U.S. Attorney. If it is a tax investigation, it’s sent to the U.S. Department of Justice’s Tax Division.
How Long Does an IRS Criminal Investigation Take?
The IRS is one of the world’s most capable and well-resourced investigative agencies. Its special agents may take their time to conduct extremely thorough investigations over the years, if necessary. The IRS has no obligation to tell a taxpayer that an audit has become a criminal investigation, which makes it easy to make incriminating statements during audits or other contact with the IRS if not represented by competent legal counsel.
What Should You Do If You Think the IRS Is Investigating You?
If you have been dealing with a tax audit and suddenly communications from the IRS agent pursuing your case stop, your case may be headed for a criminal referral. In some cases, your bank or accountant will tell you that the IRS’s Criminal Investigation division or U.S. Attorney’s Office has contacted them or subpoenaed your records.
In either case, you need to consult a federal criminal defense attorney who understands IRS criminal investigations as soon as possible. At the same time, you should end conversations with your accountant, banker, and other financial advisors or professionals.
When you speak with a defense attorney, you have attorney-client privilege, which means your conversations remain confidential. There is no such privilege with an accountant, financial advisor, or banker. Any statements made to these professionals can be used against you in a criminal investigation.
If an IRS-CI agent contacts you, you should decline to answer their questions. It is best if you have already engaged a federal financial crimes defense lawyer and can refer all questions to your attorney. You have the right to remain silent, and you should exercise this right.
How Can an IRS Defense Lawyer Help You Through the Process?
If you are charged with a federal tax offense or related financial crimes in New Jersey, the Law Offices of Jonathan F. Marshall can:
- Listen to you to get your side of “the story”
- Thoroughly investigate the charges against you and the IRS’s case
- Craft a strong defense strategy tailored to your case
- Negotiate with the U.S. Attorney’s Office on your behalf
- Represent you effectively in court, if necessary
After consulting with you, your attorney can speak for you to ensure you do not unwittingly incriminate yourself. Your attorney can help you understand if it will help you to cooperate with IRS investigators or the U.S. Attorney. Cooperation may require you to waive certain rights, so it’s important to fully discuss your options and their implications.
By promptly engaging our team of experienced New Jersey financial fraud defense attorneys, it may be possible to have charges dismissed or reduced. For example, we may be able to help you take steps to comply with relevant tax law. Through our decades working in federal courts in Camden, Newark, and Trenton, we have developed the professional relationships necessary to negotiate and obtain agreements that benefit our clients.
If we cannot make a deal, we will attack the prosecution’s evidence at every turn and assert that the U.S. Attorney cannot prove the charges against you. For example, to convict you of tax fraud, the government must prove your “voluntary, intentional violation of a known legal duty.” While it is often said that “ignorance of the law is no excuse,” ignorance may be a complete defense against tax fraud charges.
Contact Our New Jersey Criminal Defense Attorneys
If you are under investigation for federal financial crimes in New Jersey, your freedom and financial stability are at stake. Legal defenses against federal charges are often intricate and require a nuanced understanding of federal law and procedural rules to protect your rights. The Law Offices of Jonathan F. Marshall offers a team of experienced attorneys well-versed in federal tax and financial law, capable of crafting a solid defense strategy tailored to your case.
Contact us as soon as possible to schedule a free and confidential initial legal consultation. We will fight diligently to protect your rights as we seek the best outcome available to you.
