Florida IRS Criminal Investigations: Common Triggers and Warning Signs To Be Alert For

While it’s not uncommon to face issues when dealing with the Internal Revenue Service (IRS), few cases come close to a criminal investigation. Most tax problems in Florida are civil matters handled without law enforcement involvement.

However, some situations cross that line. Our Florida tax and IRS attorney has over 50 years of experience handling complex tax matters and explains how IRS criminal investigations start and what to watch out for.

How IRS Criminal Investigations Get Started

The IRS Criminal Investigation Division, known as IRS-CI, is the agency’s law enforcement arm. It pursues roughly 3,000 criminal prosecutions per year, and the conviction rate is historically high.

Investigations often start when a tax agent spots patterns that suggest intentional wrongdoing, rather than honest mistakes. Examples include:

• Keeping two sets of financial records, one real and one for appearances.
• Consistently reporting income that does not match bank deposits or lifestyle.
• Destroying or hiding business records during an audit or inquiry.
• Providing false information to an IRS agent or revenue officer.
• Routing income through shell entities or third parties to hide it from the IRS.

When a revenue agent finds these indicators, they must refer the case to IRS-CI. At that point, the civil audit is typically suspended, and the taxpayer often isn’t told that a criminal investigation has begun. That information gap can last months or even years.

When Florida IRS Issues Cross Into Criminal Territory: Common Warning Signs

If you suspect you are the subject of an IRS criminal investigation, the most important thing you can do is to avoid making any statements and get legal representation immediately.

Unlike a civil audit, a criminal investigation is built to gather evidence for prosecution. Anything you say can and will be used against you. Signs that a case may have crossed into criminal territory include:

• An IRS revenue agent stops communicating with you unexpectedly, without explanation.
• An IRS special agent contacts you directly rather than a revenue agent or revenue officer.
• Someone you know, such as a business associate or accountant, mentions being interviewed by the IRS about you.
• Your bank or financial institution receives a summons related to your accounts.
• A civil audit was underway and suddenly goes silent.

Under IRS procedures, a criminal investigation can begin only after a supervisor reviews and approves the referral. The case must clear multiple internal checkpoints before prosecutors recommend it. While this process can take years, don’t wait to get legal help. The earlier you act, the more options you have.

Contact Our Experienced Florida Tax and IRS Attorney Today

An IRS criminal investigation is one of the most serious situations a taxpayer can face, and it requires immediate, knowledgeable action. To protect yourself and your rights, get Florida tax and IRS attorney Ronald Cutler on your side.

A Certified Public Accountant and former FBI Special Agent focused on tax matters, Mr. Cutler has the perfect combination of legal skill and experience needed to protect your rights. Don’t delay. Contact us today to request a consultation.

Sources:

irs.gov/compliance/criminal-investigation

irs.gov/compliance/criminal-investigation/how-criminal-investigations-are-initiated