Criminal Tax Litigation Scenarios

While uncommon, the IRS does pursue criminal prosecution in tax disputes. You may not even know you are currently under criminal investigation by the IRS. Here are some of the warning signs that your audit has been transferred to the criminal investigation division of the IRS:

• Revenue Agents who have been auditing your tax return disappear
• Revenue Officers who were once aggressive, stop calling
• You or someone else associated with you is contacted by an IRS Special Agent

Criminal cases typically start with referrals from Civil IRS agents who see clear indicators of fraud. You still retain your rights as a taxpayer during a criminal investigation and are advised to contact an attorney if you believe you may be under criminal investigation. 

If an IRS Special Agent contacts you, inform them that you are seeking legal counsel and decline to answer any questions without your attorney present. The criminal investigation statistics are daunting (over a 90% conviction rate!), and it is crucial to have an experienced tax defense lawyer by your side when you are contacted by a CI Special Agent.

Civil Tax Litigation Scenarios

Our goal in every case is to reach a favorable outcome for our clients as efficiently as possible. The best way of meeting this goal is to settle cases prior to litigation, but this is not always a viable option. If litigation is required, we have highly skilled litigators prepared to represent you in federal court.

We can litigate your case in several courts:

• U.S. Tax Court: This is where the majority of tax cases are heard. Judges in this court have extensive knowledge of U.S. tax law. The biggest advantage of requesting a hearing in the U.S. Tax Court is that taxpayers are not required to pay their assessment prior to the hearing, as they are in the U.S. district court. In addition, most cases filed in U.S. Tax Court are settled. 
• U.S. District Court: In order to be granted a hearing in this court, taxpayers must have exhausted all of the administrative options for resolving their case and must have paid the assessed tax before filing a suit for a refund. Despite these drawbacks, this forum can be advantageous since it is the only court that gives you the option of a jury trial.
• Court of Federal Claims: A centralized court that hears tax refund cases. 
• U.S. Bankruptcy Court: If you or your business has filed for bankruptcy, this court may decide whether IRS tax assessments or liens are valid. It can also determine whether or not your tax liabilities may be discharged as part of your bankruptcy filing.

Whether your tax issue is resolved through negotiation or before a judge, our team at Frost Law will fight to protect your rights and work hard to achieve the best possible outcome for your case.

Protecting Your Rights and Your Finances from IRS Tax Litigation

Don’t let tax problems consume you. Talk with our team today about a confidential case evaluation.

Whether you’re facing an audit, struggling with back taxes, or dealing with civil or criminal IRS tax issues, Frost Law is here to help. We understand the complexities of tax law and the impact tax controversy can have on your personal and professional life. 

Our team is dedicated to providing personalized and effective representation to individuals and businesses throughout Maryland.

We believe in clear communication and will keep you updated throughout the process. We'll explain your options and create a plan that fits your specific situation. Our clients come from all walks of life, and we've assisted with a wide range of issues, from straightforward late filing penalties to intricate tax litigation.

Frost Law has the experience and resources needed to give you the most opportunities to be as successful as possible. Contact us today at (443) 743-3381 or fill out our contact form for immediate assistance.