IRS Criminal Investigation Defense Attorneys in New York, New Jersey & Federal Court
Under IRS Criminal Investigation? Protect Your Finances, Career, and Freedom.
The IRS Criminal Investigation Division (IRS-CI) is the federal agency responsible for investigating potential criminal violations of the Internal Revenue Code, the Bank Secrecy Act, and laws relating to money laundering. While most tax issues are civil matters handled through audits or collection proceedings, cases referred to IRS-CI are criminal in nature and can result in felony charges, prison sentences, and life-changing financial penalties.
What Does IRS Criminal Investigation Cover?
IRS-CI investigates a wide range of alleged offenses, including:
- Tax Evasion (26 U.S.C. §7201): Willfully attempting to avoid taxes owed.
- Filing False Returns (26 U.S.C. §7206): Submitting inaccurate or fraudulent returns.
- Failure to File / Failure to Pay (26 U.S.C. §7203): Neglecting tax obligations.
- Payroll Tax Violations: Withholding but not remitting employee taxes.
- Corporate or Business Tax Fraud: Use of shell companies, false deductions, or offshore accounts.
- Bank Secrecy Act Violations: Failure to report foreign bank accounts (FBAR violations).
- Money Laundering (18 U.S.C. §1956–1957): Moving funds derived from illegal activity.
- Related White Collar Crimes: Securities fraud, healthcare fraud, wire/mail fraud, and corruption.
How IRS-CI Investigations Begin
Cases usually start with red flags from audits, whistleblowers, or suspicious financial activity. IRS-CI agents may use:
- Financial records and forensic accounting
- Bank subpoenas and currency transaction reports
- Electronic surveillance and digital evidence
- Cooperation with the FBI, DOJ, SEC, and state authorities
If IRS-CI believes a crime has been committed, it can refer the case to the U.S. Attorney’s Office for prosecution in federal court.
Potential Penalties for IRS Criminal Cases
- Tax Evasion: Up to 5 years in federal prison and fines of $100,000 ($500,000 for corporations).
- Filing False Returns: Up to 3 years in prison and fines up to $250,000.
- Failure to File or Pay: Up to 1 year in prison per count.
- Money Laundering: Up to 20 years in prison and fines of $500,000 or twice the value of the transaction.
- Asset Forfeiture: Seizure of homes, vehicles, businesses, and bank accounts tied to alleged crimes.
- Restitution: Mandatory repayment of unpaid taxes, often with interest and penalties.
IRS-CI in New York & New Jersey
Because New York and New Jersey are financial hubs, IRS-CI maintains a strong presence in both states. Agents work closely with the U.S. Attorney’s Offices for the Southern and Eastern Districts of New York, as well as the District of New Jersey. This means even relatively small cases may be investigated aggressively if they involve complex financial transactions, high-dollar amounts, or public figures.
Defense Strategies in IRS Criminal Investigations
- Early Intervention: Engaging counsel during the investigation phase can sometimes prevent charges from being filed.
- Challenging Willfulness: Prosecutors must prove intent to defraud; honest mistakes or reliance on bad advice are not crimes.
- Contesting Evidence: Attacking the validity of audits, subpoenas, or digital forensics.
- Negotiating Settlements: Pursuing civil resolutions, restitution, or plea agreements to avoid harsher penalties.
- Trial Defense: If charges proceed, building a comprehensive defense to challenge the government’s case.
Why Legal Representation Matters
IRS-CI cases combine tax law, criminal law, and complex financial analysis. Federal prosecutors dedicate extensive resources to securing convictions, often using expert witnesses, forensic accountants, and multi-agency task forces. Without skilled defense, defendants risk losing their freedom, finances, and reputation.
An experienced IRS criminal defense attorney in New York, New Jersey, and federal court can intervene early, protect your rights during investigations, and fight aggressively if charges are filed.
