Criminal Tax Investigations – State and Federal

Criminal tax investigations can arise from allegations of tax evasion, fraudulent filings, or other willful violations of tax laws. These cases require a skilled defense team to navigate complex investigations and safeguard your rights and reputation.

Federal Criminal Tax Investigations

Pre-Investigation Counsel: Advising clients on how to respond to inquiries, subpoenas, or IRS “knock and talks” to minimize risks.
Representation in Investigations: Engaging with IRS Criminal Investigation (CI) agents to address allegations and protect your interests.
Voluntary Disclosures: Assisting with disclosures to resolve potential liabilities before charges are filed.
Grand Jury Representation: Providing legal counsel during grand jury proceedings or subpoenas for testimony or records.
Defense Against Prosecution: Crafting a robust defense strategy to counter allegations of tax evasion, fraud, or conspiracy.

State Criminal Tax Investigations

State Tax Agency Inquiries: Representing clients during investigations initiated by state tax authorities for alleged violations such as underreporting income or failing to remit taxes.
Negotiations and Settlements: Working with state tax agencies to resolve cases before they escalate to criminal charges.
Representation in State Court: Providing aggressive defense in cases involving alleged fraud, evasion, or other state tax crimes.

Criminal tax investigations can lead to severe consequences, including fines, restitution, and imprisonment. At The Walton Firm, we take a proactive and meticulous approach to defending our clients, leveraging decades of experience in tax law, litigation, and negotiation.

Whether your case involves state or federal authorities, our priority is to protect your rights, reputation, and future by achieving the best possible outcome.

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Walton Wins

IRS Closes Fraud Investigation Against EFIN Holder

Challenge:
An EFIN holder was connected to a service bureau under IRS investigation for tax fraud. The IRS presumed all tax professionals operating through that service bureau were complicit in fraudulent activity.

Our Defense:
We conducted a thorough review, gathered evidence, and presented a clear defense proving that our client operated with integrity and had no involvement in the alleged fraud.

Result:
The IRS closed the investigation, fully clearing our client of wrongdoing and allowing them to continue their tax practice without penalty.

IRS Closes Criminal ERC Investigation

Challenge:
A tax professional was placed under IRS criminal investigation, accused of illegally misusing the Employee Retention Credit (ERC). The IRS alleged that she filed false employer tax returns and improperly obtained ERC funds.

Our Defense:
We conducted a detailed review of her filings and financial records, then demonstrated to the IRS that our client had never filed false employer returns and had never received any ERC funds.

Result:
The IRS closed the case, fully clearing our client of wrongdoing and allowing her to continue her tax practice without criminal charges.

State Revenue Closes Criminal Tax Fraud Case

Challenge:
A tax professional was accused by the State Revenue Department of filing false tax returns and committing tax fraud. The state alleged that he manipulated Schedule C income and losses to generate credits and refunds for his clients. The potential penalty carried a sentence of more than five years in prison.

Our Defense:
We challenged the state’s allegations, highlighting weaknesses in the evidence and demonstrating that the case did not meet the standard required for a conviction.

Result:
The state agreed there was insufficient evidence to pursue jail time. Instead of facing over five years in prison, our client received two years’ probation and a two-year restriction from filing tax returns.