An IRS audit reviews whether a tax return is correct. A criminal tax investigation examines suspected criminal conduct. Being contacted by an investigator does not, by itself, mean you will be charged, but what you say and how you handle records can matter. The first priority is understanding who is contacting you and why.
1. How an investigation begins
IRS Criminal Investigation, often called CI, receives information from other IRS employees, law-enforcement agencies, and the public. Agents review preliminary information before an approved subject investigation begins. A civil examination can lead to a referral, but an audit does not automatically become a criminal case.
2. What special agents investigate
CI investigates suspected tax crimes and certain financial crimes, including Bank Secrecy Act and money-laundering violations. Investigators may examine whether income was intentionally concealed or returns were deliberately false. A tax error and a criminal offense are not the same thing; the legal elements and evidence must be evaluated separately.
3. Interviews and requests for information
Investigators may seek interviews with taxpayers, employees, accountants, and other witnesses. A voluntary request to talk is different from a summons or subpoena. Before a substantive interview, consider speaking with an attorney about your role in the investigation and your rights. Do not assume a conversation is harmless because it is informal, or that an accountant's presence substitutes for legal advice.
4. Records and compulsory legal process
Agents can gather financial records and use investigative tools subject to applicable legal requirements. A summons, subpoena, or search warrant calls for a different response from a voluntary request. Preserve paper and electronic records, and have counsel review any document and its deadlines promptly. Do not destroy, alter, backdate, or create misleading records, and do not assume you may ignore compulsory process.
5. Investigation does not mean conviction
An investigation may be discontinued or may lead to a recommendation for prosecution. A recommendation is not a criminal charge, and a charge is not a conviction. Prosecutors decide whether to pursue a case through the applicable review process. Civil tax, interest, and penalty issues may also remain, even when no criminal prosecution follows.
6. Choosing a response
The right approach depends on whether you are a witness or potential subject, what records exist, and whether the government has already contacted you. Correcting returns or making a disclosure can have consequences beyond the tax balance. Discuss those choices with qualified counsel before acting; no disclosure program or amended return guarantees protection from prosecution.
If an IRS special agent contacts you
- Record the agent's name, office, and contact information, and verify the contact through an official channel.
- Keep copies of any letter, summons, subpoena, or other legal document and note its deadlines.
- Preserve original records, emails, and electronic files without altering them.
- Seek legal advice before a substantive voluntary interview or disclosure.
- Do not send confidential case details through a website contact form.
Get help from someone who has seen it from the inside
Bernie McCarthy's background includes service as an IRS attorney and Special Assistant U.S. Attorney. McCarthy Tax Law, P.A., based in Melbourne Beach and representing taxpayers nationwide, can help evaluate government contact and the civil and criminal issues it raises. Learn more about our criminal tax defense services.
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This article provides general information, not legal advice for your situation.