With the advent of FBAR and the voluntary disclosure policies many taxpayers are on the cusp of a potential tax crime.

Much thought goes into the IRS pursuit of tax criminals. Obviously the IRS cannot pursue everyone so they pick and chose they victims carefully.

Much of the thought that goes into these cases will depend on the size of the case, the amount of tax owed, the willfulness of the intent, aspects of the deception and the possibility of conviction of the case and lastly, what is in the best interest of the U.S. government.

The Conviction rate is well in the favor of the U.S. government. As a general rule, they get there person historically about 90% of the time.

Each case is based on its own set of facts.

What is Voluntary Disclosure Practice of the IRS

It is currently the practice of the IRS that a voluntary disclosure will be considered along with all other factors in the investigation in determining whether criminal prosecution will be recommended.

Internal Practice of IRS

This voluntary disclosure practice creates no substantive or procedural rights for taxpayers, but rather is a matter of internal IRS practice, provided solely for guidance to IRS personnel.

Does not Guarantee Immunity

A voluntary disclosure will not automatically guarantee immunity from prosecution however a voluntary disclosure may result in prosecution not being recommended.

This practice does not apply to taxpayers with illegal source income.

When does Voluntary Disclosure Occur

A voluntary disclosure occurs when the communication is truthful, timely, complete, and when:

1. the taxpayer shows a willingness to cooperate (and does in fact cooperate) with the IRS in determining his or her correct tax liability; and

2. the taxpayer makes good faith arrangements with the IRS to pay in full, the tax, interest, and any penalties determined by the IRS to be applicable.

3. A disclosure is timely if it is received before:

4.. the IRS has initiated a civil examination or criminal investigation of the taxpayer, or has notified the taxpayer that it intends to commence such an examination or investigation;

5. the IRS has received information from a third party alerting the IRS to the specific taxpayer’s noncompliance;

6. the IRS has initiated a civil examination or criminal investigation which is directly related to the specific liability of the taxpayer; or

7. the IRS has acquired information directly related to the specific liability of the taxpayer from a criminal enforcement action (e.g., search warrant, grand jury subpoena).

If you have any questions whether a crime has been committed, call us today.

If you are having any issues and would like to speak directly to a tax attorney call us today for a no cost professional consult.

IRS Investigations!!!

Totals
Investigations Initiated

2502
Prosecution Recommendations

1765
Information/Indictments

1567
Total Convictions

1270
Total Sentenced*

1269
Percent to Prison

81.2%
Average Months to Serve

44

*Sentence includes confinement to federal prison, halfway house, home detention, or some combination thereof.