Learn About Possible Defense Strategies in High-Stakes Federal Cases from an Experienced Texas Criminal Tax Lawyer
Federal tax crimes carry substantial fines and prison time. While most of the IRS’s enforcement efforts are civil in nature, the agency does not hesitate to pursue criminal charges when warranted. IRS Criminal Investigation (IRS CI) uses search warrants, subpoenas and other tools to obtain evidence in support of criminal allegations, and federal prosecutors aggressively seek indictments for tax fraud, tax evasion and other crimes. While there are defense strategies available, avoiding unnecessary consequences requires the advice and representation of an experienced Texas criminal tax lawyer.
At Brown, P.C., we have decades of experience representing individuals and companies facing federal tax crime allegations. Defending clients in criminal tax matters is a substantial portion of our practice. We focus on handling high-stakes cases on behalf of high-income and high-net-worth taxpayers, and we have a well-documented track record of helping our clients avoid both criminal charges and criminal penalties.
Possible Defense Strategies in Federal Criminal Tax Cases
Due to the substantial risks involved, all federal criminal tax matters require a highly strategic and custom-tailored approach. While there are a variety of ways to defend against federal tax crime allegations, not all options are available in all cases. When we represent clients that are facing scrutiny from IRS CI, we work quickly to assess all potential defenses, and then we develop and execute a strategy that is designed to help our client achieve the best possible outcome in light of the circumstances at hand.
Here are some examples of the defense strategies we may use to protect our clients:
Demonstrating Federal Tax Compliance
Whenever possible, we defend our clients by demonstrating their compliance with the Internal Revenue Code (or other applicable law). When facing an IRS CI investigation, it is important to keep in mind that facing allegations is not the same as facing federal charges. If investigators had the evidence they needed to substantiate charges, they would not be investigating. Many federal tax investigations are misguided, and when we can affirmatively demonstrate that prosecution is unwarranted, we can often secure swift and confidential resolutions for our clients.
Challenging the Government’s Evidence of Non-Compliance
While affirmatively demonstrating compliance with the Internal Revenue Code (or other applicable law) is one way to successfully defend against a criminal tax investigation, proof of compliance isn’t necessary to avoid prosecution. To substantiate criminal charges, federal prosecutors must be able to establish the defendant’s guilt beyond a reasonable doubt. If prosecutors don’t have the evidence they need to meet their burden of proof, then prosecution is unwarranted. As a result, if we can show that the federal government won’t be able to prosecute its case successfully, this can be enough to resolve a criminal investigation regardless of the underlying circumstances.
Challenging the Government’s Investigative Tactics
Another potential defense strategy in federal criminal tax cases is to challenge the government’s investigative tactics. Even if prosecutors have the evidence they need to substantiate criminal charges, they still won’t be able to secure a conviction if they can’t use their evidence in court. Various errors and oversights during the investigative process can render the government’s evidence inadmissible, and our lawyers are extremely well-versed in the substantive and procedural requirements that govern criminal tax investigations. If we can show that the government won’t be able to use its evidence in court, we may be able to leverage this to secure a favorable result without the issuance of a grand jury subpoena.
Seeking to Avoid an Indictment or Secure Pre-Trial Dismissal
If it isn’t possible to avoid the issuance of a grand jury subpoena, our focus will shift from defending against IRS CI’s investigation to defending against the U.S. Department of Justice’s (DOJ) prosecution. In federal criminal tax cases, securing an indictment is a necessary step toward pursuing the government’s case at trial. We have extensive experience defending clients at the grand jury stage as well as seeking dismissal of grand jury indictments during the pre-trial phase of federal criminal tax litigation.
Negotiating a Settlement with the IRS or DOJ
Whether before, during or after the federal grand jury process, negotiating a settlement with the IRS or DOJ will be an advisable approach in some cases. When avoiding consequences entirely is not a realistic outcome, we focus our efforts on mitigating our clients’ liability to the fullest extent possible. While negotiating a settlement is never our first tactic, it is a necessary tactic in certain circumstances. We help our clients make informed decisions at all stages of their federal criminal tax cases, and when settlement is warranted, we negotiate on behalf of our clients to protect them against the consequences of a conviction at trial.
Fighting the Government’s Criminal Tax Allegations in Federal Court
Even when it isn’t possible to avoid an indictment, this doesn’t necessarily mean that settlement is warranted. In some cases, it will be in taxpayers’ best interests to fight the government’s allegations at trial. There are various reasons why litigating a criminal tax case may be in a defendant’s best interests, and while there are many steps we can take to protect our clients against needing to litigate, there are ultimately certain factors that are beyond our control. With that said, federal criminal tax trials are relatively few and far between, and in the vast majority of cases, we are able to achieve favorable results for our clients long before they have to think about the possibility of trial.
Request a Confidential Consultation with Texas Criminal Tax Lawyer Lawrence Brown
If you are facing scrutiny from IRS CI, it is important that you engage experienced defense counsel as soon as possible. We have the experience you need, and we can provide representation on an emergency basis if necessary. To request a confidential consultation with Texas criminal tax lawyer Lawrence Brown, call us at 888-870-0025 or tell us how we can reach you online today.