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An IRS investigation (concerning financial crimes) is an assessment to evaluate financial crimes revolving around the violations of the IRS codes. A criminal tax investigation by the US Attorney’s office isn't the first step taken by the IRS for delinquent taxpayers. It is not the same as an audit for judging the correctness of a tax return. The IRS uses notices, liens, and wage garnishments  to ensure the taxpayer diligently responds to the urgency of the situation. However, it is understandable for taxpayers to have several queries flooding their minds regarding the seriousness of IRS tax investigations. That said, continue reading as we answer some of the commonly asked questions about criminal IRS tax investigations.

What are the possible reasons for the IRS to conduct a criminal tax investigation?

Several factors or reasons might trigger an IRS tax investigation including fraudulent tax evasion tactics, bankruptcy fraud, healthcare frauds, money laundering, offshore assets deposition, and so on. The IRS is extremely vigilant over these cases, which is why you should hire a tax settlement attorney or a Dallas tax attorney in case you’ve received an IRS tax investigation notice.

How do I know if I am under criminal investigation by the IRS?

When it comes to collecting taxes, the IRS has a well-defined systematic approach. The simplest way to analyze that you might be under a tax investigation is to understand how far the IRS has gone till now! Following are some of the situations that should alert you about a possible initiation of a tax investigation:

  • You are updated by your bank that your financial assets have been subpoenaed by US Attorney’s office
  • The US Attorney’s office has subpoenaed your friends, coworkers, and relatives on your behalf.
  • You have been approached by a CID agent through a call or a visit at your workplace.
  • A pressuring IRS agent during or without an audit has stopped contacting you altogether.

Under any of these situations, it is strongly advisable not to share sensitive information or any document with the CID officials that might land you in trouble. Immediately contact a Dallas tax lawyer to take the best legal action for you.

What are the actions the IRS takes during a criminal tax investigation?

The IRS tax investigation is a serious issue, given the fact that CID operatives are special agents carrying a licensed firearm. A tax investigation consists of several measures such as subpoenaing of financial assets and search warrants. Your case then goes to the court by indictment by the grand jury, if bail is denied, the jury decides your case. This is why one shouldn't disclose any information to the CID and contact a professional tax lawyer at the earliest to handle your case and provide appropriate resolutions. 

Final Word

As taxpayers, you need to understand that avoiding the IRS is not in your best interest. It'll only add up to your issues! This is where a tax resolution attorney steps in to navigate you through legal obligations. Professional IRS tax help for Dallas residents in cases like these calls for a consultation with an IRS tax attorney. Choose a leading tax attorney in Dallas that understands the grave nature of your case, responds shortly, and manages all the required documentation to get you out of the mess that is the IRS tax investigation.


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