You will know you are in trouble with the IRS if you open the door and the person is an agent from the Division of Criminal Investigation or CID. The CID is the police department of the IRS and consists of 2 sections: Special Compliance and General Compliance. Special Enforcement investigates organized crime, drugs and unions. Everything else, like common taxpayers, is the responsibility of the General Audit.
If the CID is on your doorstep, you or someone you know is under criminal investigation. Consultations can take a long time to complete and include interviews with friends, family, neighbors, business partners, bankers, staff, accountants, insurance agents, etc. Don’t try to lie if the CID tells you about someone you know. Be careful, as anything you say could lead to you, especially if they are investigating your business partner. Approximately 80% of tax crimes are processed by the CID.
If you are the subject of the investigation, call your attorney immediately and do not speak to the CID. Your attorney can find out what is happening by calling the IRS.
The CID will recommend whether or not it should be prosecuted after the investigation. It depends on the merit of the case against you. They must be able to prove that you are guilty beyond a reasonable doubt, so if you have a few things going for you and a good attorney, you may receive civil penalties instead.
If you do not file a tax return, tax evasion or filing a fraudulent tax return, you will get the CID in your case.
If the CID moves forward with the prosecution, the Department of Justice takes over. It will be decided whether the IRS should seek a federal grand jury indictment against you after an Assistant United States Attorney General considers your case. If you are indicted, you will be arrested or ordered to appear before a federal judge. At this point, you will have a chance to plead guilty or not guilty. You will have to post a bond or you may be released at your own risk.
The case will go to trial when he pleads not guilty. It can be done by a jury or a judge alone. It has to be proven by the IRS that you are guilty of the crime beyond a reasonable doubt. You will go to federal prison if you are convicted of a tax offense. If you end up reaching an agreement with the prosecution, you will be fined and / or put on probation, homebound or sent to a safe house. You may have to bear the costs of prosecution. Two years is the average for a tax offense.
