FEDERAL TAX CRIMES

Mr. Feldman has experience in criminal tax cases involving special agents from the Internal Revenue Service Criminal Investigative Division and Internal Revenue Service investigations involving foreign bank accounts and FBAR under 31 U.S.C. Section 5314. Mr. Feldman also has experience in civil tax cases and controversies, tax refund litigation in U.S. district court, IRS summons enforcement, and asset forfeiture matters involving the Internal Revenue Service (IRS).

The government wields an enormous amount of power and resources in any criminal tax investigation or prosecution. Taxpayers may be subject to an IRS examination (audit), they may receive an IRS summons to appear before an official of the IRS, they may receive a grand jury subpoena, or their businesses may be subject to a full-blown search during which multiple, armed IRS agents may search for and seize property.

Common federal tax crimes include:

  • Tax Evasion (26 U.S.C. § 7201)
  • Failure to File (26 U.S.C. §7203)
  • Failure to File Foreign Bank Account (FBAR) related documents such as Form 8938 or FinCen Form 114.
  • Failure to Report a foreign bank account or interest in a foreign bank account on Form 1040, Schedule B.
  • Filing a False Tax Related Document (26 U.S.C. §7206),
  • Fraudulent Tax Return, List, Account or Statement (26 U.S.C. §7207)

 Frequently, a criminal tax investigation will involve a parallel civil investigation or enforcement action and may also include the seizure of property and criminal or civil asset forfeiture proceedings. Furthermore, even if a criminal tax charge is never filed, a taxpayer may be subject to a notice of deficiency proceeding in U.S. Tax Court based on the civil fraud penalty. In fact, in cases where criminal fraud is not pursued, the IRS may develop and apply the civil fraud penalty where warranted because there is no applicable statute of limitations for assessing the civil fraud penalty under 26 U.S.C. Section 6333 but there are other significant statute of limitations periods (sometimes 3 years, sometimes more) which may apply to certain penalties and it is therefore critical to consult with an attorney with experience and knowledge relating to the opening and closing of these important limitations periods.

Signs you may consider contacting  a criminal or civil tax attorney:

  • You have been contacted by the Internal Revenue Service
  • You have received  a letter from a Swiss Bank or other foreign banking institution stating that they intend to close your account if you do not enter a disclosure program
  • You have received an informal document request seeking an appointment (Form 4564)
  • You have received an IRS summons (Form 2039) requesting production of documents and/or appearance before the Internal Revenue Service to provide testimony
  • You have reason to believe that you may be the subject of an IRS audit (examination) or an IRS investigation.