What Not to Do When Facing an IRS Criminal Tax Audit in New Jersey

Articles/News, Asset Forfeitures / IRS Audits, Offshore Account Update

Posted on May 31, 2024 |

Criminal tax audits present substantial risks for both individual and corporate taxpayers. While taxpayers can effectively mitigate these risks with the right approach, they can also make their situation much worse than it needs to be if they aren’t careful. Learn about five critical mistakes to avoid during an IRS criminal tax audit from New Jersey criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

5 Critical Mistakes to Avoid During an IRS Criminal Tax Audit

When you are dealing with an IRS criminal tax audit, everything you say and do can have serious implications. To make sure you don’t put yourself (or your company) at risk unnecessarily, here are five all-too-common mistakes you will want to avoid:

1. Do Not Ignore the IRS

If the IRS is conducting a criminal audit of your filing history or your company’s tax returns, you cannot simply ignore the IRS. You need to execute a proactive defense strategy, and you need to make sure you timely (and appropriately) respond to all subpoenas, search warrants, and other requests for interviews and information.

2. Do Not Make False Statements to Revenue Agents or Investigators

When responding to requests from the IRS, you must avoid making any false or misleading statements. While you can—and should—withhold information to the extent allowable by law (more on this below), attempting to mislead federal agents is a federal crime. Even if you aren’t guilty of tax evasion or tax fraud, making false statements to revenue agents or investigators could lead to both fines and prison time.

3. Do Not Illegally Withhold Information During the Audit

Subpoenas, search warrants, and many other types of formal requests are legally enforceable, and if you fail to comply as required, you could face criminal prosecution for this as well. With that said, there are limitations to their enforceability, and you should seek advice from an experienced New Jersey criminal tax lawyer before responding to any IRS inquiry.

4. Do Not Share Information with the IRS Unnecessarily

You should also seek advice from an experienced New Jersey criminal tax lawyer before sharing any information with the IRS unnecessarily. While cooperating with an IRS criminal tax audit can be the best approach in some cases, it can also be very risky if you aren’t careful.

5. Do Not Make Any Assumptions About Potential Allegations or Outcomes

Finally, when facing an IRS criminal tax audit, it is important not to make any assumptions about potential allegations or outcomes. If you make flawed assumptions, you could overlook available (and necessary) defense strategies, and you could miss out on opportunities to resolve the IRS’s inquiry without facing criminal charges.

Discuss Your IRS Audit with New Jersey Criminal Tax Lawyer Kevin E. Thorn in Confidence

If you need to know more about how to protect yourself during an IRS criminal tax audit, we encourage you to contact us promptly. To discuss your situation with New Jersey criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, call 201-842-7696 or contact us confidentially online now.

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