Federal Tax Crimes Attorney

Types of Federal Tax Crimes We Defend

Tax Evasion (26 U.S.C. § 7201)

Tax evasion is the most serious federal tax crime, involving willful attempts to evade or defeat federal income taxes. This includes underreporting income, claiming false deductions, hiding assets, and using nominee accounts to conceal taxable activities. Penalties: Up to 5 years in prison per count and $250,000 fine Collateral Consequences: IRS civil penalties up to 75% of unpaid tax plus interest

Failure to File Tax Returns (26 U.S.C. § 7203)

Willful failure to file required tax returns when having sufficient income to require filing. This misdemeanor can become a felony when part of a larger tax evasion scheme. Penalties: Up to 1 year in prison per year unfiled and $100,000 fine Enhanced Penalties: Felony charges when part of tax evasion conspiracy

Filing False Tax Returns (26 U.S.C. § 7206)

Filing tax returns containing materially false information, including false income, deductions, credits, or other tax information. Each false return constitutes a separate felony count. Penalties: Up to 3 years in prison per false return and $250,000 fine Pattern Enhancements: Sentences increase dramatically with multiple false returns

Tax Preparer Fraud (26 U.S.C. § 7206)

Tax preparers who file false returns for clients face serious federal charges. This includes inflating deductions, claiming false credits, and creating fictitious tax shelters. Penalties: Up to 3 years in prison per false return prepared Professional Consequences: Loss of preparer privileges and professional licenses

Employment Tax Crimes (26 U.S.C. § 7202)

Willful failure to collect, account for, or pay over employment taxes. Business owners and responsible persons can face both criminal charges and civil trust fund recovery penalties. Penalties: Up to 5 years in prison and $250,000 fine Trust Fund Penalties: 100% personal liability for unpaid employment taxes

Conspiracy to Defraud the IRS (18 U.S.C. § 371)

Conspiracy charges in tax cases involve agreements to impede IRS functions through deceit, craft, trickery, or dishonest means. This broad statute covers many tax avoidance schemes. Penalties: Up to 5 years in prison and $250,000 fine Scope: Can include activities that aren’t independently criminal

Structuring Financial Transactions (31 U.S.C. § 5324)

Structuring involves breaking up financial transactions to avoid currency reporting requirements. Often charged alongside tax evasion when attempting to hide income. Penalties: Up to 5 years in prison and $250,000 fine Asset Forfeiture: Structured funds subject to civil and criminal forfeiture

Fraudulent Tax Shelters and Schemes

Promoting abusive tax shelters, offshore tax evasion, and other tax avoidance schemes can result in serious federal charges under multiple statutes. Penalties: Vary by specific charges but can exceed 10 years in prison Injunctive Relief: Courts can enjoin continued promotion of tax schemes

Federal Tax Crimes Penalties and Enhancements

SENTENCING ENHANCEMENTS FOR TAX CRIMES Federal sentences for tax crimes are significantly enhanced based on tax loss amount, sophisticated means, leadership role, and abuse of trust. Tax loss calculations can include civil penalties and interest, dramatically increasing sentences.

COLLATERAL CONSEQUENCES WARNING Tax crime convictions result in permanent criminal records, professional license revocation, security clearance loss, and lifetime IRS scrutiny. Civil tax liabilities remain even after serving criminal sentences.

IRS Criminal Investigation Defense Process

1. Initial IRS Contact and Special Agent Interview

When IRS Criminal Investigation contacts you, we immediately assess the situation and advise on interactions with special agents. Never speak to IRS-CI without experienced counsel present – they are building a criminal case.

2. Grand Jury Investigation Defense

IRS-CI presents cases to federal grand juries through subpoenas for records and witness testimony. We challenge improper subpoenas, assert applicable privileges, and prepare witnesses for grand jury testimony.

3. Prosecution Declination Efforts

Before charges are filed, we work to convince prosecutors that criminal prosecution is not warranted. This involves comprehensive white paper submissions and negotiations with the U.S. Attorney’s Office.

4. Indictment Response and Arraignment

If charges are filed, we immediately begin aggressive defense preparation, including challenging the indictment, seeking bond, and developing comprehensive defense strategies for complex financial evidence.

5. Discovery and Expert Witness Preparation

Tax crimes cases involve voluminous financial records and complex accounting issues. We work with forensic accountants and tax experts to challenge the government’s financial evidence and loss calculations.

6. Trial Preparation and Plea Negotiations

We prepare for trial while exploring plea negotiations that minimize exposure. Tax crimes trials require sophisticated presentation of financial evidence and expert testimony on complex tax law issues.

7. Sentencing and Asset Protection

If conviction occurs, we present comprehensive mitigation evidence and challenge tax loss calculations to minimize sentences while implementing strategies to protect family assets from civil collection.

Common Tax Crimes Defense Strategies

Lack of Willfulness

Tax crimes require proof of willful intent to violate known legal duties. We present evidence of good faith reliance on professionals, complexity of tax laws, and absence of willful intent.

Reliance on Professional Advice

Defendants who reasonably relied on qualified tax professionals may have complete defenses to tax crime charges. We present evidence of disclosure to professionals and reasonable reliance on their advice.

Challenging Tax Loss Calculations

Federal sentences depend heavily on tax loss amounts. We challenge the government’s loss calculations through expert testimony and alternative theories of proper tax treatment.

Statute of Limitations Defenses

Most tax crimes have six-year limitations periods, but the limitations can be extended by various factors. We carefully analyze timing issues and assert applicable limitations defenses.

Constitutional Challenges

We challenge violations of Fourth Amendment search and seizure protections, Fifth Amendment self-incrimination rights, and due process violations in IRS investigations.

Voluntary Disclosure and Cooperation

When appropriate before charges are filed, we explore voluntary disclosure options and cooperation agreements that may prevent criminal prosecution.

Why Choose Adams Defense Law for Tax Crimes Defense

Federal tax crimes defense requires attorneys who understand complex tax law, federal criminal procedure, IRS investigation methods, and federal sentencing guidelines. Our comprehensive approach includes:

• Tax Law Expertise: Deep understanding of federal tax law, regulations, and IRS procedures
• IRS-CI Experience: Extensive experience with IRS Criminal Investigation procedures and tactics
• Federal Court Experience: Proven track record in federal tax crimes trials and appeals
• Forensic Accounting: Access to top forensic accountants and tax experts
• Asset Protection: Strategies to protect client assets from criminal forfeiture and civil collection
• Professional Network: Relationships with tax professionals for defense preparation
• Early Intervention: Ability to intervene during IRS investigations before charges are filed
• 24/7 Availability: Immediate response for IRS criminal investigations and federal arrests