Procedural Map to an IRS Tax Investigation

The Internal Revenue Service (IRS) is a government agency responsible for collecting taxes and administering the Internal Revenue Code. The IRS also conducts criminal investigations on any personnel or organization against whom they may find fraudulent evidence while an audit. When facing an investigation by the IRS, tread smartly to avoid any civil and criminal charges and the resultant punishment if you are found guilty of tax fraud. Before you can learn how to protect yourself, you first need to familiarize with the whole IRS tax investigation process. Given below are four key stages of the investigation.

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Preliminary Analysis

Special agents analyze information obtained during IRS audits or from other public sources to determine the actual occurrence of tax fraud or any other financial crime. This step is the known as the Preliminary Investigation. If the criminal investigation management finds substantial evidence in the analysis reports to launch a subject criminal investigation, they will approve that the investigation go to the next stage of the IRS criminal investigation process.

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Conducting a Criminal Investigation

When an investigation turns into an open criminal investigation agents may use various tactics such as interviewing witnesses, surveillance, obtaining search warrants, and subpoenaing bank statements and records to gather facts and collect evidence on criminal activities. This process is overseen by IRS criminal tax attorneys who visit all legal aspects of the investigation and ensure they are correctly addressed. Once all the evidence is documented and proven to be legitimate, the IRS proceeds to initiate the prosecution of the offender.


All the evidence is submitted to the Department of Justice or the United States Attorney, and if the investigation is found to be with merits, it is accepted for prosecution . In such instances, prosecutors will request the assistance of the special agent in preparing for the trial. Despite the involvement of the IRS special agent, the investigation is managed by prosecutors as soon as the prosecution is initiated. If the Department of Justice does not find substantial evidence against a suspect when the investigation is brought for prosecution, they may discontinue the investigation altogether.


The sole aim of an IRS criminal investigation is to prove a suspect guilty through trial or a plea bargain. If the defendant is found guilty, they may have to pay heavy penalties or even do time in a federal prison. Chances of doing time diminish with a plea bargain, but the offender may still have to pay huge fines with added taxes.


If you or your organization is the subject of an IRS investigation, you need to consult an experienced tax attorney immediately. It is often futile to try to play lawyer when facing criminal charges on such complicated issues. Hiring unproven ‘experts’ is also tantamount to playing Russian Roulette with your fate. Nick Nemeth, a seasoned tax lawyer with a history expertly representing and advising taxpayers facing IRS investigations, is just a phone call away. The skilled team at the Law Offices of Nick Nemeth specializes in dealing with all sorts of problems you may face with regards to the IRS Department. To get answers to your questions please fill out a Free Special Report and we will contact you right away or call us at (972) 426-2553 to schedule your free no-obligation consultation with Nick Nemeth.

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