IRS Voluntary Disclosure Practice
For those who intentionally or fraudulently misreported income or assets on their past filings and are now looking to come clean with the IRS, the Voluntary Disclosure Practice is for you. To learn more about this particular program, speak with a criminal tax attorney at Evolution Tax and Legal. Essentially, this program provides people protection against criminal prosecution for coming cleaning and accurately reporting and paying their taxes as they should have in the first place.
There is a very formal process implemented by the IRS to be taken through this program and should not be attempted without sound legal guidance from a tax attorney experienced in voluntary disclosures. As part of this program, the IRS requires a minimum of a 6-year disclosure. This requires the person entering the program to prepare and file directly with an IRS auditor from the time of their criminal investigation unit to at least six years prior of tax returns, as well as any other applicable reporting forms as implemented by the IRS and the United States Treasury.
In return for being provided protection against potential criminal prosecution, the IRS imposes a penalty regime based upon the year in the disclosure period that has the highest amount of income that went unreported, as well as a penalty based upon the year with the highest value of assets that went unreported.
This is a disclosure program that can take more than several months to complete and requires you to work hand in hand with an IRS auditor. If you believe you have misreported your U.S. or foreign income and assets and are at risk of prosecution, please contact our criminal tax defense attorneys at Evolution Tax and Legal to discuss your options and eligibility associated with this program.
IRS Criminal Investigation Representation
Falling under criminal investigation by either the IRS or a State tax authority can be extremely stressful and make it hard for anyone to sleep at night. While we cannot take all of this emotion out of the picture, the criminal tax lawyers at Evolution Tax and Legal are well-versed in dealing with criminal tax allegations and working with the government to dispel their concerns, thus ending the investigation, or mitigating the potential damage to you through a criminal investigation.
If you or your tax preparer suspect that you may be under criminal investigation, we recommend contacting a criminal tax defense attorney as soon as possible to engage as your counsel and represent you in any tax litigation proceedings.
A normal tax preparer (CPA, EA, CTEC) does not have the legal authority or wherewithal to properly represent you in court in such an investigation. Additionally, none of the conversations you have with a non-licensed attorney or tax professional are protected under the attorney-client privilege, exposing your sensitive conversations to being subpoenaed by the government and used in their case-in-chief against you.
IRS Criminal Investigation Process
How does a criminal tax investigation begin? Well, it can come from a civil audit, where the auditor sees “badges of fraud” in their dealing and examination of your prior tax filings, a referral from another case, where another taxpayer has disclosed names or information in exchange for leniency in a prosecution, or from the taxing authorities own direct investigation into your tax issues.
However, what is most common amongst all of these potential beginnings is the appearance of “badges of fraud” in your fact pattern.