What Is a Criminal Tax Administrative Investigation?
Quick Answer
Criminal tax administrative investigation has four stages: (1) CI special agent assignment and preliminary investigation; (2) subject interviews and document gathering; (3) Special Agent’s Report (SAR) recommending prosecution; and (4) Tax Division review and U.S. Attorney’s Office decision. The short version is that the administrative phase precedes indictment. In our experience, engagement with counsel during administrative phase can often prevent prosecution — once referred to USAO, options narrow.1
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Four stages of criminal tax administrative investigation.
The Four Administrative Investigation Stages
| Stage | Activity2 |
|---|---|
| Preliminary | CI agent assigned |
| Interviews | Witness / subject |
| SAR | Prosecution recommendation |
| DOJ Review | Tax Division + USAO |
Quick Reference
Jump to: preliminary, interviews, SAR, or DOJ.
1. Preliminary Investigation
CI special agent assigned; preliminary investigation.
If this is you: CI agent assigned. Preliminary work. Often starts with referral from civil examiner or outside source. Subject may not know yet.
Preliminary Strategy
- Early counsel engagement if known.
- Preserve records.
- Do not discuss with CI without counsel.
- Identify co-conspirator / witness issues.
- Evaluate voluntary disclosure.
2. Interviews and Document Gathering
CI interviews subjects, witnesses, gathers records.
If this is you: CI contact. Interview requests. Summons / subpoenas. Critical phase. Attorney representation essential.
3. Special Agent’s Report (SAR)
CI drafts SAR recommending prosecution.
If this is you: Investigation concluding. SAR summarizes evidence. Recommends prosecution. Internal review. Subject not party to SAR.
4. DOJ Tax Division and USAO Review
Tax Division reviews; USAO files charges.
If this is you: Post-SAR. DOJ Tax Division review. Authorization decision. USAO accepts for prosecution or declines. Pre-indictment intervention opportunity.
Under CI investigation? Book consultation immediately.
Admin Investigation Lookup
| Signal / Document | Meaning |
|---|---|
| CI Special Agent contact | Active investigation |
| Summons / subpoena | Formal process |
| Target letter | Prosecution imminent |
| Subject letter | Possibly involved |
| Witness interview request | Case being built |
Admin Investigation Statute
- 6-year criminal statute typical.
- Statute can be paused during certain acts.
- Admin phase 12-24 months typical.
Admin Investigation Patterns
| Situation | Outcome |
|---|---|
| Early counsel engagement | Better outcomes |
| Voluntary disclosure pre-CI | Avoid criminal |
| Post-SAR declination | Possible |
| USAO indictment | Post-DOJ approval |
Admin Investigation Escalation
Preliminary
Agent assigned.
Active
Interviews and process.
SAR / Review
Prosecution decision.
First 48 Hours After CI Contact
- Do not speak with CI.
- Engage criminal tax counsel.
- Preserve all records.
- Evaluate voluntary disclosure.
- Plan response strategy.
The ROI Question
Admin phase intervention critical. Pre-indictment defense often prevents prosecution.
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
- CI contact.
- Summons / subpoena.
- Target / subject letter.
- Witness interview request.
Frequently Asked Questions
What is administrative investigation?
Pre-indictment CI investigation phase. Four stages — preliminary, interviews / documents, SAR, DOJ review. Typically 12-24 months.
What’s a CI special agent?
IRS Criminal Investigation agent. Federal law enforcement. Investigates tax crimes. Armed federal agents.
Can I talk to CI?
Not without counsel. CI agents are criminal investigators. Statements used against you. Attorney representation critical.
What’s a SAR?
Special Agent’s Report. CI agent’s prosecution recommendation. Not public. Not discoverable except in limited circumstances.
What’s DOJ Tax Division review?
All federal tax prosecutions reviewed by DOJ Tax Division. Approves or declines CI recommendation. USAO then files.
Can investigation be stopped?
Pre-SAR: defense presentation, voluntary disclosure, cooperation. Post-SAR: Tax Division declination, USAO declination. Each phase different.
What’s Tax Division conference?
Optional pre-prosecution meeting with DOJ Tax Division. Defense opportunity to present case. Can influence authorization decision.
What’s a target letter?
Formal letter indicating you are target of grand jury. Prosecution imminent. Counsel critical.
Can I cooperate?
Yes through attorney-negotiated proffer. Substantial assistance can lead to non-prosecution or reduced charges. Timing matters.
Is grand jury admin or judicial?
Judicial but often used in admin phase. Grand jury subpoenas gather evidence. Not trial.
What happens after SAR?
Internal CI review. DOJ Tax Division review. USAO decision. Multiple steps before indictment.
Can I see the SAR?
Generally no during admin phase. Limited production in certain circumstances. Not like civil audit file.
Does voluntary disclosure still work?
Pre-CI contact: yes typically. Post-CI contact: generally no. Timing critical.
Next Steps
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