Tax Fraud Lawyers Who Know How the IRS Thinks

Facing IRS criminal investigation or tax fraud charges?

Our tax fraud defense attorneys are former federal prosecutors who know how the government builds cases. We defend against tax evasion, filing false returns, and IRS CI investigations. Free confidential consultation.

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Work With The Best Federal Tax Fraud Lawyers

Federal tax crimes carry severe penalties including years in federal prison, hundreds of thousands in fines, and permanent felony convictions that follow you for life. The IRS Criminal Investigation Division maintains a 90% conviction rate on cases they prosecute. If you’re under investigation or facing charges, you need attorneys who understand exactly how the government builds these cases.

Our Role as Your Tax Evasion Lawyer

What is Tax Fraud?

Tax fraud is the intentional act of deceiving the IRS to avoid paying taxes you legally owe. It includes underreporting income, claiming false deductions, hiding money in unreported accounts, and filing returns you know to be inaccurate. The key word is intentional—honest mistakes are not fraud. For criminal charges, the government must prove you knew your conduct was illegal and did it anyway. Tax fraud can result in civil penalties (up to 75% of the underpayment) and criminal prosecution (up to 5 years in prison). The distinction between a careless error and willful wrongdoing often determines whether you face an IRS bill or a prison sentence.

Federal Tax Crimes We Defend

Our tax fraud attorneys defend individuals and businesses against the full spectrum of federal tax crimes:

Tax Evasion (26 U.S.C. § 7201)

The most serious tax crime. Tax evasion requires proof of a tax deficiency, an affirmative act of evasion (like hiding income or filing false returns), and willfulness. Penalties include up to 5 years in federal prison and fines up to $100,000 for individuals ($500,000 for corporations), plus the cost of prosecution and civil penalties.

Filing False Tax Returns (26 U.S.C. § 7206)

Making false statements on tax returns or other documents carries up to 3 years in prison and fines up to $100,000. This includes falsely claiming deductions, underreporting income, or submitting fraudulent documents to the IRS.

Failure to File Tax Returns (26 U.S.C. § 7203)

Willful failure to file required tax returns is a misdemeanor carrying up to 1 year in prison and fines up to $25,000 for each year not filed. However, when combined with other tax crimes, penalties escalate dramatically.

Employment Tax Fraud

Failing to collect, account for, or pay over employment taxes (withholding, FICA) can result in both civil trust fund penalties and criminal prosecution. Business owners and responsible persons face personal liability.

Conspiracy to Defraud the IRS (18 U.S.C. § 371)

Conspiracy charges allow prosecutors to charge multiple defendants and carry penalties of up to 5 years in prison. The government frequently adds conspiracy counts to tax crime indictments.

Money Laundering (18 U.S.C. § 1956)

When tax crimes involve concealing the source of funds, money laundering charges may apply. These carry up to 20 years in federal prison, dramatically increasing exposure.

FBAR and Offshore Account Violations

Willful failure to report foreign bank accounts (FBAR violations) carries criminal penalties of up to 5 years in prison and fines up to $250,000, in addition to civil penalties that can exceed the account value.

Don't Face the IRS Alone.

Federal tax crimes carry years in prison and permanent felony records. Our criminal tax defense attorneys have helped clients avoid prosecution, reduce charges, and stay out of prison. Contact us before your situation gets worse.

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Types of Tax Fraud Under Federal Law

Federal tax fraud under 26 U.S.C. § 7206 covers a range of deceptive conduct designed to cheat the IRS out of taxes owed. Each violation requires proof that you acted willfully, meaning you knew what you were doing was wrong. Here are the primary forms of tax fraud the government prosecutes.

Filing False Returns

Signing a tax return that contains material false statements is a federal crime when you know the information is incorrect. This goes beyond simple math errors or overlooked deductions. It involves deliberately misrepresenting income, fabricating expenses, or claiming credits you know you don't qualify for, all while signing under penalty of perjury that the return is accurate.

Preparing or Helping Prepare Fraudulent Returns

You don't have to file the return yourself to face charges. If you help prepare, advise on, or submit a tax document knowing it contains false information, you're equally liable. Accountants, tax preparers, and even friends who assist with fraudulent filings can face prosecution, regardless of whether the actual filer knew the return was false.

Creating False Documents

Fabricating records to support a fraudulent tax position is a separate offense. This includes forging receipts, creating fake invoices, falsifying business records, or producing counterfeit tax forms. The IRS treats document fabrication as strong evidence of willful intent.

Hiding Assets from the IRS

Transferring, concealing, or moving assets to prevent the IRS from collecting taxes you owe constitutes fraud. This includes hiding cash, moving money to offshore accounts, transferring property to relatives, or using shell companies to obscure ownership—all to keep assets beyond the reach of IRS collection.

Deception During IRS Negotiations

Making false statements or hiding information during audits, settlement negotiations, or offer in compromise proceedings is fraud. If you misrepresent your financial situation to secure a lower settlement or lie to IRS agents during an examination, you face criminal exposure beyond the original tax issue.

The Willfulness Requirement

Every tax fraud charge requires the government to prove willfulness beyond a reasonable doubt. They must show you knew your conduct violated the law and chose to proceed anyway. Evidence of intent can be direct (emails discussing how to hide income) or circumstantial (a pattern of underreporting over multiple years). Without clear proof of intentional wrongdoing, there is no criminal case.

How We Defend Against Tax Fraud Charges

When evidence is strong, our tax fraud lawyers negotiate. Pre-indictment negotiations with DOJ can result in declination of prosecution, reduced charges, or favorable plea agreements with significantly reduced sentences.

Challenging Willfulness

If you genuinely believed your conduct was legal—even if that belief was unreasonable, you cannot be convicted. We investigate what you actually knew, what you believed, and what advice you received. The government must prove beyond a reasonable doubt that you knew your conduct was illegal.

Reliance on Professional Advice

If you relied in good faith on advice from your accountant or tax attorney, this can negate willfulness. You must have provided full information to the advisor and actually followed their advice. Your accountant may have made the mistake. But if you relied on them honestly, you shouldn’t go to prison for it.

Insufficient Evidence

The government must prove every element beyond a reasonable doubt. We analyze their evidence for weaknesses, inconsistencies, and gaps. Tax calculations are complex; the government’s numbers aren’t always right. We work with forensic accountants to challenge their tax loss calculations and identify errors.

No Tax Deficiency

Tax evasion requires proof you actually owed more tax than you paid. If unclaimed deductions, credits, or losses offset the alleged underreported income, there may be no deficiency, and no crime.

Statute of Limitations

Tax evasion has a 6-year statute of limitations. Failure to file has a 6-year limit from the return due date. If charges fall outside these windows, we move to dismiss.

Constitutional Violations

Evidence obtained through illegal searches or coerced statements may be suppressed. We examine whether your Fourth or Fifth Amendment rights were violated during the investigation.

Warning Signs You May Be Under Criminal Tax Investigation

Most people don’t know they’re under IRS criminal investigation until it’s too late. By then, the investigation has often been ongoing for months or years. Recognizing the warning signs early gives you critical time to prepare a defense before charges are filed.

Direct Contact from IRS Criminal Investigation

IRS Criminal Investigation (IRS CI) special agents carry badges and credentials. Unlike revenue agents who conduct civil audits, CI agents investigate potential criminal violations. If a CI special agent contacts you, your family, your business associates, or your accountant, treat this as a serious criminal matter. Do not speak with them without an attorney present. Anything you say can and will be used against you.

Your Civil Audit Suddenly Stops

If you're in the middle of an IRS audit and suddenly the revenue agent goes silent, stops requesting documents, or cancels scheduled meetings without explanation, this may indicate your case has been referred to Criminal Investigation. Civil audits that uncover "badges of fraud" are routinely referred for criminal review.

Third-Party Contacts

IRS CI agents often interview witnesses before contacting the target. If you learn that investigators have contacted your bank, your employer, your accountant, your business partners, or family members, you may already be under investigation.

Grand Jury Subpoena

A federal grand jury subpoena for documents or testimony is a clear sign of criminal investigation. Grand juries are convened to determine whether criminal charges should be filed. If you receive a subpoena, contact a criminal tax defense attorney immediately—do not attempt to comply on your own.

Bank Account Activity

Unusual activity in your bank accounts such as frozen funds, declined transactions, or notices that documents have been subpoenaed may indicate IRS investigation. Banks file Suspicious Activity Reports (SARs) that can trigger criminal scrutiny.

Letter from DOJ Tax Division

If you receive a letter from the Department of Justice Tax Division, charges are likely imminent. The DOJ Tax Division prosecutes federal tax crimes. A letter from DOJ means your case has moved beyond IRS investigation to active prosecution consideration.

What To Do If You See Warning Signs of Tax Fraud Investigation

Do not discuss your tax situation with anyone except a criminal defense attorney. Do not destroy documents—obstruction charges are often easier to prove than the underlying tax crime. Do not contact potential witnesses. Contact a tax fraud defense attorney immediately. The attorney-client privilege protects your conversations with your lawyer, unlike conversations with your accountant or tax preparer, who can be compelled to testify against you.

Federal Tax Crime Penalties: What You're Actually Facing

Federal tax crime penalties are severe and life-altering. Understanding exactly what’s at stake helps you make informed decisions about your defense.

Crime	Maximum Prison	Maximum Fine (Individual)	Maximum Fine (Corporation)
Tax Evasion (§ 7201)	5 years	$100,000	$500,000
Filing False Returns (§ 7206)	3 years	$100,000	$500,000
Failure to File (§ 7203)	1 year per count	$25,000	$100,000
Conspiracy (18 U.S.C. § 371)	5 years	$250,000	$500,000
Money Laundering (§ 1956)	20 years	$500,000	$500,000
FBAR Violations (willful)	5 years	$250,000	N/A

Frequently Asked Questions About Tax Fraud Defense

What should I do if IRS Criminal Investigation contacts me?

Do not speak with IRS CI special agents without an attorney present. You have the right to remain silent and the right to an attorney. Politely decline to answer questions, do not lie (false statements to federal agents is a separate crime), and do not consent to searches. Contact a criminal tax defense attorney immediately. Attorney-client privilege protects your conversations with your lawyer.

What is the difference between tax fraud and tax evasion?

Tax evasion (26 U.S.C. § 7201) is a specific crime requiring three elements: a tax deficiency, an affirmative act of evasion, and willfulness. Tax fraud is a broader term covering various criminal violations including filing false returns, failure to file, and employment tax violations. All tax crimes require proof of willfulness, meaning intentional wrongdoing rather than mistakes or negligence.

Can I go to prison for tax fraud?

Yes. Tax evasion carries up to 5 years in federal prison per count. Filing false returns carries up to 3 years per count. Money laundering charges can add up to 20 years. IRS Criminal Investigation has approximately a 90% conviction rate, and most convicted defendants receive prison sentences. There is no parole in the federal system. You serve at least 85% of your sentence.

What is "willfulness" in tax fraud cases?

Willfulness is the critical element in tax crime prosecutions. The Supreme Court defines it as “voluntary, intentional violation of a known legal duty.” The government must prove you knew your conduct was illegal and did it anyway. Honest mistakes and good-faith misunderstandings of tax law are valid defenses. If you genuinely didn’t know your conduct was illegal, you cannot be convicted of a willful tax crime.

Can making an honest mistake on my tax return result in criminal charges?

Generally no. Criminal tax charges require willfulness. Honest mistakes and good-faith errors typically result in civil penalties (additional tax, interest, and accuracy penalties) rather than criminal prosecution. However, patterns of errors, large amounts, and other “badges of fraud” can make mistakes appear intentional to investigators. If you’re concerned about past returns, consult with a criminal tax attorney before the IRS contacts you.

What are "badges of fraud"?

Badges of fraud are behaviors and patterns that indicate intentional tax fraud rather than honest mistakes. The IRS uses these indicators to identify cases for criminal referral.

-Maintaining two sets of books or destroying records
-Making false statements or filing false documents
-Hiding income in offshore accounts
-Using cash to avoid paper trails
-Substantial understatement of income over multiple years
-Failure to cooperate with auditors

The presence of multiple badges strengthens the government’s case for willfulness.

How long does a tax fraud investigation take?

IRS CI investigations typically take 1-3 years before charges are filed, sometimes longer for complex cases. The investigation involves evidence gathering, witness interviews, financial analysis, and internal IRS review. Cases that survive IRS review go to DOJ for prosecution decision. The entire process from investigation to indictment can span 2-5 years, which creates opportunities for early intervention by defense counsel.

What is the IRS Voluntary Disclosure Program?

The IRS Voluntary Disclosure Program allows taxpayers to disclose previous non-compliance before the IRS discovers it. Successful voluntary disclosure generally results in civil penalties rather than criminal prosecution. Requirements are strict: you must come forward before the IRS begins an investigation, make full disclosure, and cooperate completely. If you’re already under investigation, voluntary disclosure is not available. Consult with a criminal tax attorney to determine eligibility.

What is the difference between civil and criminal tax cases?

Civil tax cases involve disputes over taxes owed and result in financial penalties. Criminal tax cases involve allegations of intentional wrongdoing and can result in prison. The IRS handles most tax issues civilly through audits, assessments, and collection. Criminal cases are investigated by IRS Criminal Investigation and prosecuted by the Department of Justice. The burden of proof differs: civil cases use “preponderance of evidence” while criminal cases require “beyond a reasonable doubt.”

How much does criminal tax defense cost?

Criminal tax defense is a significant investment, but you’re facing potential prison time, felony conviction, and financial ruin. Costs vary depending on case complexity and whether the case goes to trial. We provide transparent fee discussions during initial consultation. Consider the cost relative to the consequences: years in prison, a permanent felony record, and financial penalties that can exceed defense costs many times over.

Protect Your Freedom. Contact a Tax Fraud Defense Attorney Now.

If IRS Criminal Investigation has contacted you, if you’ve received a grand jury subpoena, or if you’re facing tax fraud charges, every day matters. The government is building their case while you wait. Evidence is being gathered. Witnesses are being interviewed. Decisions about your future are being made without your input.

The consultation is confidential and protected by attorney-client privilege. Unlike conversations with your accountant, what you tell us stays between us. We’ll evaluate your situation honestly and tell you exactly what you’re facing and what can be done about it.
Don’t wait until you’re indicted. Don’t try to explain your way out of this on your own. Don’t assume it will go away. The consultation is free. Your freedom is not.