Free Tax Guide
6 Frequently Asked Questions about the Criminal Tax Process
Key Takeaway
Four common criminal tax questions taxpayers ask: (1) “Am I under criminal investigation?” — indicators include CI contact, summons, target letter; (2) “What’s the difference from civil audit?” — purpose (prosecution vs. tax collection) and process; (3) “What’s the sentencing exposure?” — depends on tax loss, charges, cooperation; and (4) “Can I avoid criminal?” — pre-contact voluntary disclosure usually can. The short version is that criminal tax follows specific procedures distinct from civil. In our experience, the questions above cover most initial concerns.1
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Four common criminal tax process questions.
The Four Common Questions
Under InvestIndicatorsCivil vs CrimDifferenceExposureSentencingAvoidVDP
| Question | Key Answer2 |
|---|---|
| Under Investigation? | CI contact / summons / letter |
| Civil vs Criminal | Purpose / process |
| Sentencing | Tax loss + charges |
| Avoiding Criminal | Pre-contact VDP |
Quick Reference
Jump to: invest, difference, exposure, or avoid.
1. Am I Under Criminal Investigation?
Look for CI contact, summons, target letter.
If this is you: Unsure of status. Indicators: CI special agent contact, grand jury subpoena, target / subject letter, witness interview requests of associates.
Investigation Indicators
- CI contact.
- Grand jury subpoena.
- Target or subject letter.
- Witness interviews.
- Civil audit freeze.
2. Civil vs. Criminal Difference
Civil = tax collection. Criminal = prosecution.
If this is you: Audit ongoing. Civil collects tax + penalties. Criminal prosecutes crimes. Different procedures, standards, consequences. Civil can refer to criminal.
3. Sentencing Exposure
Depends on tax loss, charges, cooperation.
If this is you: Facing charges. Guidelines driven by tax loss + enhancements. Specific-count maximums. Cooperation substantial reduction. Attorney estimate after case review.
4. Can I Avoid Criminal?
Pre-contact voluntary disclosure usually can.
If this is you: Pre-IRS contact. Willful conduct. VDP typically avoids criminal. Civil penalties still apply. Post-contact options narrow.
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Criminal Tax FAQ Lookup
| Situation | Resource |
|---|---|
| CI contact | Engage counsel immediately |
| Target letter | Attorney response |
| Grand jury subpoena | Protected statement advice |
| Audit fraud indicators | Fifth Amendment considerations |
| Pre-contact concern | VDP evaluation |
FAQ Statute Reference
- 6-year criminal typical.
- Civil 3-year + extensions.
- FBAR 6-year.
FAQ Common Scenarios
| Scenario | Response |
|---|---|
| Civil audit with fraud | Fifth Amendment + counsel |
| Pre-CI disclosure | VDP path |
| CI already involved | Admin defense |
| Post-indictment | Pre-trial defense |
FAQ Escalation
Civil to Criminal
Fraud referral.
Admin to Prosecution
SAR + Tax Division + USAO.
Plea or Trial
Resolution.
First 48 Hours
- Assess current status.
- Engage counsel.
- Preserve records.
- Do not make statements.
- Evaluate options.
★Brotman Law handles criminal tax FAQs. Based in San Diego.
The ROI Question
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Under Criminal Tax Investigation?
If you know or suspect the IRS Criminal Investigation division is looking at you, the time for routine tax advice is over. What you say and do in the early stages matters significantly — and the window for voluntary disclosure closes the moment CI makes contact. If you’re in this situation, get counsel before you respond to anything.
Get Criminal Tax Counsel → Or call: (619) 378-3138
When to Engage
- Any criminal tax concern.
- Audit with fraud indicators.
- CI contact.
- Pre-contact voluntary disclosure consideration.
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Frequently Asked Questions
How do I know if I'm under criminal investigation?
CI special agent contact. Grand jury subpoena. Target or subject letter. Witness interviews of associates. Civil audit sudden halt. Ask accountant if subpoenaed.
What's the difference between civil and criminal?
Civil: tax collection. Criminal: prosecution. Different standards (preponderance vs. beyond reasonable doubt). Different procedures. Different consequences.
Can civil audit become criminal?
Yes. Fraud indicators trigger CI referral. Civil examiner ceases. Case transitions. Attorney engagement at first fraud indicator critical.
What's my sentencing exposure?
Depends on tax loss, charges, cooperation. Guidelines based on tax loss + enhancements. Attorney estimate after case review.
Can I still do voluntary disclosure?
Pre-CI contact: typically yes. Post-CI: generally no. Timing critical. Attorney evaluation essential.
Should I talk to investigators?
Not without counsel. Statements used against you. Attorney-counseled interviews only.
Can I cooperate?
Yes through attorney-negotiated proffer. Substantial assistance reduces sentence. Timing and strategy critical.
Does criminal affect civil tax?
Not eliminated. Tax + civil fraud penalty + interest continue. Often stayed during criminal.
How long does process take?
CI investigation 12-24 months. Pre-trial 6-18 months. Trial 2-4 weeks. Appeal varies.
What's the conviction rate?
Federal tax conviction rate extremely high — 93%+. Selective prosecution. Most resolve by plea.
Will I go to prison?
Facts-specific. Guidelines calculate exposure. Defense goal: best possible outcome, alternatives to incarceration where possible.
Can my accountant represent me?
Generally no for criminal. Attorney required. Attorney-client privilege broader than CPA-client.
How much does defense cost?
Varies with scope. Free 15-minute call for cost discussion. Engagement letter specifies.
Next Steps
Criminal tax question? 15-min consultation free.
- Criminal tax process per IRM Part 9 and DOJ Tax Division Criminal Tax Manual.
- Conviction rate per DOJ statistics.
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