An IRS agent has been auditing him and he is now disappearing for days or even weeks. Unlike tax agents, who are under great pressure to close civil tax audits as soon as possible, special agents have time to afford time. Often, a tax fraud investigation takes twelve to twenty-four months to complete, and staff devote 1,000 to 2,000 hours of work to the case. Under the appropriate circumstances, an entire team of agents will be assigned to a large corporate criminal investigation, and the resources they are allowed to devote when the case appears to have good potential for prosecution will be virtually unlimited.
The IRS is also attentive to companies that use cash and to discrepancies between what others say about you and what you present. For example, if you don't include paying for some freelance work during the year and the payer reports it as a business expense, you're likely to be subject to some scrutiny. This would also be valid if you don't declare earnings from an investment account and the investment firm reports them. We analyze all the facts and theories of the defense and, based on our analysis and trial experience, determine if a trial has a significant chance of obtaining a successful outcome.
Among the firm's clients who have gone to trial and have been found innocent are business owners accused of not collecting or paying withholding taxes at source, business owners who have been accused of tax evasion, individuals who have been accused of deliberately failing to file income tax returns, violating foreign exchange reporting laws, and individuals accused of filing tax returns containing false deductions or unreported income. All related tax modules of the IRS computer system are controlled for the investigated taxpayer, so that all activity in those accounts is directed directly to the special agent. As noted above, these investigations are conducted by special agents of the IRS Criminal Investigation Division. Unproven suspicions from any of the dozens of other federal, state, and local regulatory and law enforcement agencies can initiate a criminal tax investigation.
It's not uncommon for an ex-examiner or spouse, former business partner, or even a despised competitor to contact IRS special agents and provide information that isn't entirely accurate. All of these calls are sent to the Criminal Investigation Division, and each caller speaks to a special agent or tax fraud investigation assistant who duly records the information provided, trying to obtain as much detail as possible. As noted above, agents who conduct administrative investigations use the power of attorney of the commissioner's subpoena. Every year, numerous cases of tax fraud occur as a result of ongoing cooperation between the IRS and the Drug Enforcement Agency.
It even has an intelligence unit, the Criminal Investigations Department (CI), whose sole purpose is to prosecute people for tax-related crimes. At this time, at least two levels of the artificial intelligence administration have reviewed the material of the “primary investigation” and have determined that there is sufficient evidence to initiate a criminal investigation in question. While the primary function of the Internal Revenue Service is to raise money, the purpose of a criminal investigation is not to guarantee the payment of taxes from the person or corporation under investigation. And, as any first-year law school student will tell you, it's almost never advisable to talk to investigators during a criminal investigation, unless an amnesty or immunity agreement has already been reached.
It requires a considerable investment of time, effort and ingenuity, since the real facts can never be determined through a few superficial interviews with company personnel to determine if they “know something that was done wrong”. .