Small Businesses, Construction Companies and Their Executives Are Facing Increased Scrutiny from the IRS and DOJ in 2026

Small businesses and construction companies in New Jersey are increasingly facing scrutiny from the Internal Revenue Service (IRS) and the U.S. Department of Justice (DOJ) regarding their federal tax filings. These companies’ executives are increasingly facing scrutiny as well. For these corporate and individual taxpayers, a criminal tax fraud investigation can pose substantial risks, and a proactive, strategic defense is critical to avoiding unnecessary consequences. Learn more from New Jersey criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

The IRS and DOJ Are Going After Small Businesses and Construction Companies Suspected of Willful Tax Fraud

We have seen an increase in federal enforcement activity targeting small businesses and construction companies in 2026. This includes enforcement activity involving both the IRS and the DOJ. The IRS’ Criminal Investigation division (IRS CI) is using target letters, search warrants, summonses, and other investigative tools to uncover evidence of willful tax law violations, while the DOJ is aggressively targeting small businesses and construction companies with charges for tax fraud, money laundering, and other serious federal crimes.

Executives Can Also Face Criminal Charges Related to Corporate or Individual Tax Liability

In addition to targeting small businesses and construction companies, the IRS and DOJ are targeting these businesses’ executives. We are also seeing a wide range of allegations in these cases—from underreporting business and individual income to improperly claiming personal expenses as business deductions. While tax audits can expose executives to civil liability for back taxes, interest, and penalties, criminal tax investigations targeting willful violations can expose them to both financial liability and federal imprisonment.

Responding to a Federal Criminal Tax Investigation Requires a Proactive and Strategic Defense

For small businesses, construction companies, and executives targeted in federal criminal tax investigations, fighting to avoid unnecessary consequences is a multi-step process. Some of the key steps in the process include:

• Engaging experienced tax defense counsel
• Preserving all potentially relevant records
• Conducting a risk assessment based on the focus of the investigation
• Developing a targeted defense strategy
• Pursuing a favorable resolution that avoids a grand jury indictment

While criminal tax investigations can pose substantial risks, it is often possible to secure a favorable resolution before the DOJ commits to seeking a grand jury indictment. With that said, every situation is unique, and determining which options are available in any particular case will require a comprehensive assessment of the specific circumstances.

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

New Jersey criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, has extensive experience representing small businesses, construction companies, and their executives in federal criminal tax investigations. If your business is facing scrutiny from the IRS or DOJ (or if you personally are facing scrutiny), we encourage you to contact us promptly for a confidential consultation. To schedule a call with Mr. Thorn as soon as possible, call 201-842-7696 or tell us how we can reach you online now.