Tax attorney Darrin T. Mish
When a tax problem could become a criminal case.
IRS Criminal Investigation, eggshell audits, the civil fraud penalty, and voluntary disclosure, explained in plain English and tied to the Internal Revenue Code, the Internal Revenue Manual, and the Justice Manual. Read first. Then talk to a lawyer before you talk to an agent.
Warning signs
Four moments that change everything
None of these mean you will be charged. Each one means the stakes just went up and the next conversation matters.
- The audit suddenly goes quietWhen an examiner finds firm indications of fraud, the IRS manual tells the examiner to suspend work without telling you why. Read more
- Two agents show up unannouncedSpecial agents carry badges and investigate crimes. Their first visit is often the interview they most want. Read more
- A grand jury subpoena arrivesA subpoena from a federal grand jury means prosecutors are involved. Records requests can come before anyone calls you. Read more
- You know the returns were wrong on purposeWillful noncompliance is the line between a civil problem and a criminal one. Voluntary disclosure exists for this exact situation. Read more
The library
Criminal tax guides
General legal information. Every statute and manual provision cited was checked against the official source on the date shown on the page. None of it is advice on how to avoid detection; all of it points the same direction: get counsel first.
IRS Criminal Investigation
When an Audit Turns Criminal
Civil Fraud and Badges of Fraud
The Criminal Tax Statutes
- Time limitsThe Criminal Tax Statute of Limitations Under IRC 6531
- IRC 7201Tax Evasion Under Section 7201: What the Government Must Prove
- Spies v. United StatesAffirmative Acts: The Line Between a Misdemeanor and a Felony
- IRC 7202Section 7202: When Unpaid Payroll Taxes Become a Felony
- IRC 7203Section 7203: The Four Duties Behind the Tax Misdemeanor
- IRC 7206(1)Section 7206(1): The Perjury Statute of the Tax Code
- IRC 7206(2)Section 7206(2): When Helping With a Return Becomes a Crime
- IRC 7212(a)Obstruction Under Section 7212(a): The Omnibus Clause After Marinello
- Cheek v. United StatesWillfulness: The Word That Decides Criminal Tax Cases
Voluntary Disclosure
- Voluntary disclosureThe IRS Criminal Investigation Voluntary Disclosure Practice
- Form 14457Form 14457, Step by Step: How a Voluntary Disclosure Moves Through the IRS
- TimelinessVoluntary Disclosure Timeliness: The Door Closes Without Warning
- VDP penaltiesWhat a Voluntary Disclosure Costs: The Penalty Framework
- Quiet disclosureQuiet Disclosure: Why Fixing It Quietly Is Not the Same as Coming Forward
Investigation and Prosecution Process
- Methods of proofNet Worth, Bank Deposits, and Spending: How the IRS Proves Hidden Income
- PrivilegeKovel Arrangements: Keeping Your Accountant Inside the Privilege
- DOJ reviewFrom Special Agent to Prosecutor: How DOJ Reviews a Criminal Tax Case
- Grand juryGrand Jury Subpoenas in Tax Investigations: Target, Subject, or Witness
- Search warrantsWhen IRS Criminal Investigation Executes a Search Warrant
- RestitutionRestitution After a Tax Conviction: When the Sentence Becomes a Tax Bill
- Pleas and sentencingPlea Agreements and Sentencing in Criminal Tax Cases
Looking for help with a civil IRS problem such as a levy, lien, or payment plan? See the general IRS problems overviews.
Who writes this
Darrin T. Mish, tax attorney
A Tampa tax attorney whose practice focuses on IRS collection, examination, and controversy matters, and a former public defender.
Before you talk to an agent
Exposure is a legal problem. Treat it like one.
If you think a tax problem could carry criminal exposure, talk to a lawyer before you talk to the IRS. Conversations with your lawyer are privileged. Conversations with an agent are evidence.