IRS Raids and Investigations: Potential Charges, Defenses and Consequences

If the IRS has raided your home or office in New Jersey, you could be facing a wide range of potential charges. While many IRS investigations target tax evasion and tax fraud, the IRS doesn’t just investigate tax crimes. You may need to defend against other charges as well, and building an effective defense strategy will start with ensuring that you understand all of the allegations against you. Learn more from New Jersey criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

Recent IRS Enforcement Priorities

The IRS has identified several enforcement priorities heading into 2025. It is using raids and other investigative means to pursue charges in these areas, including charges under the criminal provisions of the Internal Revenue Code (IRC) and other federal statutes. Some of the IRS’ current priorities include:

• Cryptocurrency tax fraud
• Gaming and gambling tax fraud
• Paycheck Protection Program (PPP) fraud
• Employee Retention Credit (ERC) fraud
• Partnership tax fraud
• High-income taxpayer fraud
• Abusive tax avoidance schemes

To be clear, while these are some of the IRS’ recent enforcement priorities, these are far from the only charges you could be facing. From wire fraud to bank fraud, the IRS routinely works with the U.S. Department of Justice (DOJ) to pursue a wide range of non-tax-specific criminal charges as well.

Potential Defense Strategies During IRS Investigations

Once the IRS has raided your home or office, determining what defenses you have available needs to be your top priority. While it may still be possible to resolve the IRS’ investigation without an indictment, doing so will require an informed, strategic, and proactive approach. Generally speaking, at this stage, potential defense strategies include:

• Raising issues with the sufficiency of the IRS’ evidence and seeking to close the investigation without an indictment.
• Working to negotiate a settlement with the IRS that minimizes your liability while avoiding criminal prosecution.
• Challenging the IRS’ evidence and disputing the government’s allegations against you in federal district court.

To determine which defense strategy makes the most sense in your particular case, you will need to identify all of the charges that the IRS is considering and all of the information the IRS has in its possession (including, but not limited to, the information gathered during the raid). This requires the ability to communicate with the IRS effectively, which means that you need a highly experienced New Jersey criminal tax attorney on your side.

Potential Consequences of an IRS Investigation

When the IRS pursues criminal charges, taxpayers can face substantial penalties. Along with liability for back taxes and interest, taxpayers targeted in criminal prosecutions can also face substantial fines and prison time. Many federal charges carry six-figure fines and years (if not decades) of imprisonment, and taxpayers charged with multiple offenses can easily face millions of dollars in potential penalties.

Speak with New Jersey Criminal Tax Attorney Kevin E. Thorn in Confidence

Did the IRS raid your home or office in New Jersey? If so, we encourage you to contact us promptly for more information. Call 201-842-7696 or inquire online to speak with New Jersey criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence.