The Internal Revenue Service (IRS) publicly releases an annual report containing detailed statistics culled from the Service’s Criminal Investigation Division (CI or CID), recently under new leadership by IRS-CI Chief John “Don” Fort. With the calendar counting down to April 17, 2018 – the deadline to file taxes for 2017 – our criminal tax defense attorneys have highlighted some of the report’s more alarming findings as part of an effort to dispel the harmful notion that the IRS “only chases the big corporations,” or “doesn’t bother with ordinary taxpayers.” Unfortunately, these are dangerous misconceptions that have contributed to more than one taxpayer’s criminal investigation, prosecution, and ultimately, conviction. The plain truth of the matter is the IRS strives to spread the exposure for criminal tax prosecution to all taxpayers, of all ethnicities, all religious beliefs, all sexual orientations, all political parties, in all industries and lastly, all levels of income. No one receives a pass!
The following statistics are sourced from the IRS: Criminal Investigation 2017 Annual Report, which you can browse in full here. However, in case you don’t want to comb through all 116 pages of the report yourself, our Orange County tax evasion defense lawyers have already done most of the heavy lifting for you. Simply read on for a sampling of the report’s core findings. Keep in mind that all statistics pertain to FY 2017 and apply at the national level.
The data is painfully clear: the IRS and DOJ work closely together, using increasingly far-reaching and sophisticated technology, to detect, investigate, and eventually prosecute alleged tax offenders. In particular, the Criminal Investigation Division has recently announced initiatives that will make cryptocurrency tax compliance, such as the requirement to report capital gains realized through Bitcoin, and international tax compliance, such as the requirement to disclose foreign financial accounts by filing an FBAR, enforcement priorities for 2018.
The 2018 tax season is already underway. If you believe you have achieved anything less than absolute and total compliance with state tax laws, federal tax laws, or tax laws for expatriates, you are in danger of being audited and/or prosecuted.
As the adage goes, “Don’t become a statistic.” The best way to protect yourself against civil penalties or criminal prosecution is to immediately review your record of tax compliance with a knowledgeable, skilled, and experienced tax attorney, like the California tax lawyers at the Tax Law Office of David W. Klasing. Our zealous, award-winning legal team can protect your best interests while providing strategic financial guidance, preparing your individual or business tax returns, preparing you for a tax audit, representing you before the IRS, or representing you in federal tax court. To learn more about the tax planning, tax audit, or criminal tax defense services we provide in California and beyond, contact our law offices online, or call the Tax Law Office of David W. Klasing at (800) 681-1295 for a reduced-rate consultation.
Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices in San Bernardino, Santa Barbara, Panorama City, and Oxnard! You can find information on all of our offices here.
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Here is a link to our practice overview video on warning signs that an audit has gone criminal.
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