7 Types of Potential Charges in Criminal Tax Fraud Cases

Criminal tax fraud investigations can lead to various charges under federal law. When targeted in these investigations, taxpayers must execute informed, comprehensive, and cohesive defense strategies that take into account all of the allegations (and potential allegations) involved. This starts with promptly engaging an experienced New Jersey criminal tax lawyer.

IRS Criminal Investigation (IRS CI) targets individual and corporate taxpayers suspected of committing criminal violations of the Internal Revenue Code. But it does not focus solely on uncovering evidence of tax-related offenses. IRS CI investigations can target a wide range of other offenses as well, and facing multiple types of allegations can substantially increase the risks involved. Learn more from New Jersey criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

What Charges Can Taxpayers Face as the Result of an IRS CI Investigation?

Taxpayers targeted by IRS CI can face prosecution for a wide range of tax-related and non-tax-related crimes. This includes (but is not limited to):

1. Tax Fraud and Tax Evasion

Special agents at IRS CI routinely work with prosecutors at the U.S. Attorney’s Office for the District of New Jersey to pursue charges for tax fraud and tax evasion. Several sections of the Internal Revenue Code include provisions for criminal prosecution.

2. BSA and FATCA Violations

The Bank Secrecy Act (BSA) and Foreign Account Tax Compliance Act (FATCA) impose criminal penalties for willful offshore bank account and foreign asset disclosure violations. Prosecutors can also pursue other charges under the BSA and FATCA.

3. Mail or Wire Fraud

The federal mail fraud and wire fraud statutes are extremely broad. Because of their breadth, prosecutors can often pursue charges under one or both of these statutes when pursuing tax-related crimes.

4. Money Laundering

This is true of the federal money laundering statute as well. Federal tax-related charges and federal money laundering charges often go hand in hand.  

5. Conspiracy

Even if prosecutors cannot prove tax fraud or tax evasion, they may still be able to pursue federal conspiracy charges. These charges can often carry the same penalties as the underlying offense.

6. Government Fraud

Under 18 U.S.C. Section 1001, it is a criminal offense to make false or misleading statements to federal agents or any federal authority. As a result, prosecutors can frequently pursue charges under this statute in both tax-related and non-tax-related cases.  

7. Non-Tax-Related Charges

IRS CI assists the U.S. Attorney’s Office with pursuing various types of non-tax-related charges. For example, we have recently seen cases involving prosecution of:

• Procurement fraud
• Fraud under federal programs
• Federal drug crimes
• Federal financial crimes
• RICO violations

How Our Criminal Tax Lawyers Can Help

Our criminal tax lawyers provide experienced legal representation for individual and corporate taxpayers facing scrutiny from IRS CI. We also defend taxpayers who are facing prosecution in New Jersey. We help at-risk taxpayers take proactive steps to come into compliance—and, regardless of your circumstances, we can help you make informed, strategic decisions with your long-term best interests in mind.

Schedule a Call with New Jersey Criminal Tax Lawyer Kevin E. Thorn

If you need to speak with a lawyer about your federal exposure, we encourage you to contact us promptly. Call 201-842-7696 or contact us online to schedule a call with New Jersey criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.