Auerbach Law Group, P.C.
White Plains
914-686-7171
Chappaqua
914-238-7171
East Hampton
631-329-7171
Call us

Contact our offices

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

How a civil audit can turn into a criminal tax case

It is without question that the U.S. tax system is complicated. This is why most Americans seek out the assistance of an accountant to complete their taxes. Despite the initiative to obtain professional help, if an individual is not forthcoming or takes steps to reduce their tax liabilities, this could result in significant penalties. While some may think he or she will face civil consequences, if it is determined that one took steps to obstruct or evade tax responsibilities, this could result in criminal penalties.

Whether one faces civil or criminal tax consequences depends on how a person acts during the audit. It should be noted that most criminal tax cases stem from matters that were plain civil audits. It is when the auditor notices something suspicious during a civil audit that they will then notify the Criminal Investigation Division. It should be further noted that the IRS does not need to inform the person being audited that they referred the matter to the criminal division.

Thus, when an individual is under the impression that the audit is over and he or she is in the clear, the IRS could be quietly building a criminal case. When individuals make false statements to auditors, this is considered a huge mistake. Even more so, a person's conduct during the entire audit can significantly alter the outcome of the audit and whether it gets referred to the criminal division. Trying to hide the ball or outsmart the IRS will likely not work in a person's favor, as they can typically sense when obstruction and evasion are occurring.

Because criminal tax cases could result in an individual facing prison time, hefty fines and other consequences, it is important to understand how best to protect your rights and interests in the matter. And because most criminal cases stem from civil matters, it is equally important to obtain legal guidance when faced with civil tax liabilities as well.

No Comments

Leave a comment
Comment Information

Contact us

White Plains Office
81 Main Street
Suite 307
White Plains, New York 10601

Phone: 914-686-7171
Fax: 914-686-0168
White Plains Law Office Map

East Hampton Office
17 Beverly Road
Post Office Box 2888
East Hampton, New York 11937

Phone: 631-329-7171
Fax: 631-604-6140
East Hampton Law Office Map

Chappaqua Office
726 King Street
Post Office Box 488
Chappaqua, New York 10514

Phone: 914-238-7171
Fax: 914-238-4353
Chappaqua Law Office Map

map-bg map-bg