FAQ
Frequently asked questions
Short answers. Each links to a full guide.
Criminal exposure
What is IRS Criminal Investigation?
IRS Criminal Investigation (CI) is the law enforcement arm of the IRS. Its stated mission, in IRM 9.1.1.2, is investigating potential criminal violations of the Internal Revenue Code and related financial crimes. Read more
Do I have to answer a special agent's questions?
No. The rights statement special agents read to subjects, set out in IRM 9.4.5, says the agent cannot compel answers that might tend to incriminate you and that you may seek an attorney before responding. Read more
What is an eggshell audit?
An eggshell audit is a civil examination of a taxpayer who has potential criminal exposure the examiner does not yet know about. It is a practitioner term, not an IRS term. Read more
Voluntary disclosure
Can voluntary disclosure prevent prosecution?
It can be a factor. IRM 9.5.11.9 says a voluntary disclosure is considered with all other factors and does not guarantee immunity from prosecution. Read more
When is it too late to make a voluntary disclosure?
Under IRM 9.5.11.9, a disclosure is not timely once the IRS has started an examination or investigation, has received third-party information about your noncompliance, or has acquired related information through an enforcement action. Read more
Working with a lawyer
Is talking to my accountant privileged?
The tax practitioner privilege in IRC 7525 applies only in noncriminal matters. Communications with an accountant hired through counsel to help the lawyer give legal advice may be protected under the attorney-client privilege. Read more
Can you help if I am outside Florida?
Federal tax matters before the IRS may be handled for taxpayers in any state. Criminal cases are prosecuted in federal district courts, where admission rules vary by court. Read more
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.