What to Expect During (and After) an IRS Criminal Tax Audit in New York

If you are facing an IRS criminal tax audit in New York, what do you need to know? What can you expect during the audit, and, equally important, what can you expect once the audit is over? Here are some key insights from New York tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

What to Expect During an IRS Criminal Tax Audit

If you are facing an IRS criminal tax audit in New York, the most important thing you need to know is that the audit will move quickly. At this stage, the IRS has already made a preliminary determination of liability, and the purpose of the audit is to gather additional evidence that federal prosecutors need to seek an indictment.

You can expect the IRS to seek unfettered access to your financial records, and you will need to be careful to ensure that you do not provide access unnecessarily. You can expect IRS agents to ask lots of questions as well—and, here too, you need to be careful to avoid unnecessarily providing any information that could lead to charges for tax evasion, tax fraud or other federal crimes.

While there are limits on the IRS’s authority during a criminal tax audit, auditors will test these limits, and, as a targeted taxpayer, it is up to you to protect yourself. To ensure that you are making informed decisions, you should work closely with an experienced tax attorney, and you should rely on your attorney to communicate with the IRS on your behalf throughout the audit process.

What to Expect After an IRS Criminal Tax Audit

What you can expect after an IRS criminal tax audit depends on what happens during the process. Broadly speaking, however, there are three potential outcomes:

• Resolving the audit without criminal charges or additional federal tax liability;
• Entering into a settlement agreement with the IRS that avoids criminal prosecution; or,
• Facing charges for tax evasion, tax fraud, and/or other crimes in federal court.

When criminal tax audits lead to criminal charges, targeted taxpayers can face fines and prison time (in addition to liability for back taxes and interest)—and the IRS can pursue garnishment, charging orders, levies, liens, and other means of enforcement as necessary. As a result, these are high-risk inquiries that demand taxpayers’ full and immediate attention, and taxpayers who are facing criminal tax audits should engage experienced defense counsel promptly.

Discuss Your Criminal Tax Audit with New York Tax Attorney Kevin E. Thorn in Confidence

Are you (or is your business) facing an IRS criminal tax audit in New York? If so, we can help, but it is important that you contact us right away. To discuss your criminal tax audit with New York tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence as soon as possible, call us at 914-534-6004 or tell us how we can reach you online now.