Running into tax troubles with the Internal Revenue Service is an incredibly serious situation to be in. A person in such a situation can not only face tax penalties, but also, in some circumstances, may end up having criminal proceedings initiated against them.
The IRS has a division, the Criminal Investigation division, which is tasked with looking for and into suspected tax crimes, such as suspected tax fraud. This division conducts a great number of investigations; so far this fiscal year (which started in October 2013), over 3,200 investigations have been initiated by the division.
A lot can be at stake when a person is under investigation by the IRS for suspected criminal tax behavior. Thus, it is very important for individuals who are the subjects of such investigations to understand what their rights and options are. Tax attorneys can be a valuable source of information and support for such individuals.
Sometimes, charges come out of criminal investigations by the IRS. Over 2,500 informations or indictments leveling charges have been brought so far this fiscal year as a result of IRS criminal investigations.
A person's life can be forever altered when they have tax charges brought against them. Their professional standing and their reputation can be significantly harmed, and they can face significant punishments if convicted. Thus far this fiscal year, well over 2,400 parties have been sentenced in cases that came about from IRS criminal investigations. Among the sentences individuals convicted of federal tax crimes are sometimes given are: home confinement, halfway house terms and prison terms.
Source: IRS, "Current Fiscal Year Statistics," Accessed July 16, 2014