Awards & Recognition
In Phoenix, the vibrant heart of Arizona, ambition fuels its dynamic growth. Its skyline tells a story of innovation, and its business corridors echo the sounds of relentless enterprise. Yet, lurking beneath these achievements, the convoluted federal tax laws are a formidable challenge. Surprisingly, in this city of movers and shakers, there’s an underlying sentiment that Phoenix residents might not be as risk-averse as they should be when navigating these federal tax regulations.
Traversing the web of the IRS’s civil and criminal tax regulations requires an in-depth familiarity with the IRS’s tax audit process and a discernment of the Criminal Investigation Division’s (CID) clandestine investigation procedures. Contrary to what many federal tax defense specialists might believe, launching a proactive civil and criminal tax defense strategy isn’t solely a post-indictment approach. Taking decisive actions during the early stages, particularly during high-risk tax audits that may evolve into eggshell or reverse eggshell situations, can significantly influence the direction and outcome of a case.
Our dual-licensed civil and criminal tax defense Attorneys and CPAs take a proactive approach to effectively address and resolve the CID’s tax investigation or a high-risk federal tax audit before it escalates to criminal tax prosecution. By doing so, we aim to protect our clients from the devastating public scrutiny and severe consequences of an indictment.
Tackling allegations from the IRS, especially of fraudulent civil and criminal tax infractions, extends beyond just a legal challenge. It encompasses emotional, financial, and professional dimensions. If even subtle insinuations aren’t countered swiftly, their ramifications can cast long-term shadows, outlasting the confines of the legal tax case itself. Therefore, consulting early with an experienced dual-licensed civil and criminal tax defense Attorney and CPA isn’t merely advisable—it’s quintessential.
Even slight misjudgments, such as appearing reticent, causing unnecessary delays, or showcasing undue anxiety, can quickly elevate a routine federal tax audit into a rigorous and exponentially more severe CID criminal tax investigation. Our firm, laser-focused on high-risk civil and criminal federal tax controversies, brings its concentrated experience and a stellar track record of success to Phoenix Arizona. Featuring a team of experienced dual-licensed Civil and Criminal Tax Defense Attorneys and CPAs, we are primed to guide Phoenix residents and businesses through the intricate maze of federal civil and criminal tax exposure.
The Tax Law Offices of David W. Klasing represent a beacon of federal tax defense proficiency, propelled by an illustrious history of achievements and guided by one of the nation’s most distinctively trained tax professionals. David W. Klasing, with a commendable “A+” rating from the Better Business Bureau and a pristine 10.0 score from AVVO, remains devoted to providing exceptional civil and criminal tax defense representation. In a country bustling with over a million attorneys and upwards of half a million CPAs, a mere 24,000 professionals can claim dual licensure. Narrowing this down, only around 3,000 hold the exceptional distinction of having earned a Master’s in Taxation. David W. Klasing, standing tall in this select group, harnesses his unparalleled academic and practical experience to fervently stand by our clients in their civil and criminal tax defense hurdles. Moreover, by constantly juggling a mix of civil and potential criminal tax cases, we ensure the IRS remains perennially on the defensive, keeping them guessing.
Phoenix residents can now access David W. Klasing’s unmatched expertise at our appointment-only satellite office. Here, we offer combined legal and tax services under one roof—billed at a transparent hourly rate. In our commitment to client convenience, we’ve launched a flexible scheduling initiative, enabling clients to book a four-hour session across any of our satellite locations. David W. Klasing, an instrument-rated private pilot, will personally pilot the firm’s sleek Cirrus SR22 to meet clients, ensuring no additional travel costs burden them. To tap into a world of dedicated federal civil and criminal tax defense, reach out to us at 800-681-1295 or engage us through our online contact form here.
Warning Signs of an IRS Tax Audit Has Gone Criminal
In Phoenix, it’s crucial to distinguish between a routine IRS civil tax audit and the far more rigorous criminal tax investigation undertaken by the IRS’s Criminal Investigation Division (CID). While the primary goal of an IRS civil tax audit is to verify the correctness of federal tax reporting and payments, CID’s investigations have broader objectives. It aims to gather evidence for potential federal criminal tax prosecution. These investigations are not just about penalizing wrongdoers; they’re also tactically designed to serve as a strong deterrent, discouraging others from committing similar federal civil and criminal tax violations. The IRS seeks to bolster trust in the federal tax law structure through these stringent measures and ensure that those intentionally flouting federal tax laws are consistently brought to justice. To that end, be alert to the following indicators:
- Shift in IRS Collection Agent (Revenue Officer) Communication: If an IRS Revenue Officer, after reminding you consistently about your federal tax debt, suddenly becomes unreachable, it could be an indication of a forthcoming referral to CID for an exponentially more intense criminal tax investigation. The underlying suggestion here is that there might be a potential past or current tax discrepancy or deliberate fraudulent tax violations during the collection process, such as providing misleading statements or concealing assets;
- Inconsistent Agent Presence During Audits: If an IRS agent auditing you suddenly becomes unresponsive for days or weeks, it could signify that your case has been referred to CID. At this point, the Collection and Examination Divisions typically halt their processes to avoid compromising a potential criminal tax prosecution. The IRS’s CID operates with great skill and discretion. It would be wise to consult an experienced dual-licensed civil and criminal tax Attorney and CPA promptly, especially if there are clear signs of criminal tax exposure in your situation (for instance, if you’re aware of intentional discrepancies in the audited return(s)). This is true even if your case is only at the civil investigation/audit stage;
- Bank Alerts about summons and subpoenas: An alert from your bank about IRS summons or subpoenas, especially from CID or the U.S. Attorney’s Office concerning your records underscores the necessity to consult a civil and criminal tax defense attorney immediately;
- Reassessment of Previous Returns: A notification from the IRS indicating a review of older tax returns, particularly those with known intentional inaccuracies, is a sign you should tread carefully. When IRS revenue agents or revenue officers detect what they perceive as “firm indications of fraud” during a tax audit or collection action, they either consult a Fraud Referral Specialist or directly refer the case to the IRS Criminal Investigation Division (CID) at their sole discretion.
- Heightened Document Requests: When an IRS agent zeroes in on particular transactions or requests a vast collection of documents, it often signifies a heightened level of scrutiny;
- Probing Transactional Intent: When an IRS agent probes into the motives behind your transactions, rather than merely examining their structure, it’s a red flag indicating that the IRS tax audit may be referred to CID for criminal tax investigation;
- Direct Encounters with CID Agents: Unsolicited engagements, whether a call or an unexpected visit from a CID special agent, affirmatively indicate a criminal tax investigation. Engaging in dialogue without a civil and criminal defense counsel present is counter-recommended. Politely convey your intent to consult with an IRS tax attorney and have them present before agreeing to engage in in-depth discussions. Avoid their invitation to clear up any misunderstandings as this is a trap. They rarely ask a question they do not already know the answer to and are hoping you lie, which is an additional felony to prosecute.
If CID Contacted My Accountant, What Does It Mean for Me?
If CID special agents have approached your tax accountant or they have received a subpoena for a grand jury appearance with a request for your tax records, the stakes could not be any higher. Recognizing that any past or present statements shared with your tax accountant are not protected in a criminal tax investigation/prosecution is critical. These statements can be used against you through the “discovery” process preceding a trial or if the accountant is forced to testify during a criminal tax trial. The supposed “accountant-client privilege” doesn’t shield you during criminal tax proceedings.
In stark contrast, your interactions with an attorney are shielded under the attorney-client privilege and the attorneys’ staff’s work product is also privileged. Once you know of an investigation, refrain from discussing further details with your tax accountant. Doing so might provide the IRS with additional evidence against you. Securing a specialized IRS criminal tax defense attorney becomes paramount when your accountant has liaised with special agents. It’s also noteworthy that a potential conflict of interest arises with your accountant in such circumstances. Their need to protect their reputation and livelihood directly contradicts with your need to avoid criminal tax prosecution.
- Risks of Exposing Sensitive Information: Dialogues with tax preparers or accountants are not confidential. If called upon during a legal tax proceeding, they must divulge any incriminating information shared with them. Tax preparers often attempt to redirect any blame to their clients, especially when they are at risk of simultaneous investigation & prosecution for aiding and abetting tax crimes in order to protect their professional standing, licensing, reputation, livelihood, net worth, and their very liberty.
- Lack of Legal Protection and Confidentiality: When navigating a tax audit or criminal tax probe, only the attorney-client relationship affords you the necessary confidentiality and protection to fully discuss the potentially incriminating nature of your case without having the professional you trust the issue to become a witness against you. The attorney-client privilege and the attorney work-product rule ensure that your disclosures remain safeguarded.
- Superior Legal Expertise: Engaging a dual-licensed civil and criminal tax Attorney and CPA provides an added benefit. They can collaborate with consulting accountants under the auspices of the attorney-client privilege through a mechanism known as a Kovel letter. This ensures that your disclosures remain confidential, tapping into the expertise of accountants concurrently. While accountants are geared toward precision, attorneys prioritize advocacy, making their expertise invaluable as tax matters veer toward legal disputes. We have an entire staff of Kovel accountants at our disposal.
Facing Federal Civil or Criminal Tax Charges? How Can You Strategically Defend Yourself?
Potentially being targeted for federal civil or criminal tax violations can be deeply unsettling to downright frightening, to say the least. At the Tax Law Offices of David W. Klasing, we believe in the power of an informed and strategic civil and criminal tax defense. Here’s a closer look at the extensive defenses and mitigation techniques we employ to safeguard your rights and interests:
Our Proactive Defensive Tactics
- Conversion to a Witness: If the necessity arises, we can strive to convince CID or Grand Jury investigators that our client is much more valuable to them as a witness against other potential or actual targets than as a criminal tax defendant;
- Statute of Limitations Scrutiny: We carefully assess if the statute of limitations for the alleged federal tax crime has expired, which could lead to the dismissal of civil or criminal tax charges on procedural grounds;
- Exposing Examiner Deception: We can work to demonstrate that an examining agent deliberately misled the taxpayer about an ongoing CID covert criminal tax investigation. If this deceit significantly influenced the taxpayer’s decision to provide information when they had a legitimate Fifth Amendment right not to, it could invalidate their consent. Courts have ruled that such deception turns the examination of records into an unreasonable search and seizure, violating the Fourth Amendment;
- Entrapment Defense: Our dual-licensed civil and criminal tax defense Attorneys and CPAs are adept at identifying instances where a CID special agent might have coaxed a taxpayer into a federal tax crime, setting the stage for an entrapment defense;
- Attempt to Prevent the Government From Proving Fraudulent Act(s) were Intentional: Establishing a taxpayer’s deliberate violation of a clear legal duty is central to many of the government’s criminal tax cases. Without direct evidence or insider testimony, the prosecution relies on circumstantial evidence. The validity of such evidence often teeters on uncertainty. Our team strives to skillfully challenge the credibility of such circumstantial evidence, aiming for the criminal tax investigation to be closed without prosecution, saving substantial time, cost, and effort.
Strategic Approaches We Adopt
- Continuous Communication with Key IRS Personnel: At the Tax Law Offices of David W. Klasing, we prioritize open and consistent dialogue not just with CID’s special agents but also with IRS revenue agents, revenue officers, their managers, and appeals officers. This approach enables us to pinpoint areas they find crucial and craft well-informed defenses using third-party information tailored to each case’s unique facts and circumstances;
- Paralleling the Investigation: We proactively monitor and, where possible, influence the direction of criminal tax investigations to minimize or, if possible, eliminate potential criminal tax exposure. Our defense team carefully debriefs potential witnesses after CID special agents have approached them where possible to attempt to determine the direction the government is taking. Clients are cautioned that their communications with business peers, friends, accountants, or investigators might be shared with CID, as they are not privileged communications;
- Leveraging Protected Communications: When dealing with agent summonses, we leverage the confidentiality protections that may apply to advice from a federally authorized tax practitioner. However, it’s crucial to note that such a privilege can be invoked only in noncriminal tax matters before the IRS or in noncriminal federal court tax proceedings involving the U.S.;
- Countering during the Administrative Phase: During the all-crucial administrative review, we present a slew of defenses—including lack of criminal intent, no tax due, defects in the method of proof, dual prosecution, health, and the improbability of a conviction.
David’s proven proficiency is now available in Phoenix, Arizona, at our appointment-only satellite office, providing both legal and tax services in one place—at a single hourly billing rate. We have just introduced a flexible scheduling option where our clients can reserve a four-hour slot at any of our satellite locations, and David W. Klasing, an instrument-rated private pilot, will personally travel in the firm’s fast and efficient Cirrus SR22 to any of our satellite offices to meet with you personally. We have designed this service to benefit our clients, with no additional travel expenses added to your bill. Call us at 800-681-1295 or complete our online contact form today.
In addition to our fully staffed 19,700 square foot penthouse office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) California-based satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad, and Sacramento. We also have satellite offices in Las Vegas, Nevada; Salt Lake City, Utah; Phoenix, Arizona & Albuquerque, New Mexico.
Our Phoenix office is conveniently located at:
20 E Thomas Rd Suite 2200, Phoenix, AZ 85012.
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