Defending Against Serious Tax Crime Allegations
While a tax mistake is often resolvable through civil means, the government may escalate it to criminal charges, jeopardizing your freedom. At The Wilson Firm, we specialize in tax controversies, providing robust defense against such allegations. Our experienced attorneys go beyond civil disputes to safeguard your liberty, crafting personalized strategies for individuals and entities alike.
Criminal tax prosecutions extend to business partners, corporate officers, and fiduciaries tied to investigations. We navigate these high-stakes cases with precision, intervening early to prevent escalation. In FY24, IRS Criminal Investigation launched over 2,667 probes, achieving 1,571 convictions at a 90% rate and uncovering $2.2 billion in fraud, with heightened focus on employment tax evasion and Bank Secrecy Act violations—making swift action essential.
Types of Criminal Tax Cases We Handle
Our attorneys represent clients facing a wide range of criminal tax charges, including:
- Tax Evasion (26 U.S.C. § 7201): Willfully attempting to evade taxes, punishable by up to 5 years imprisonment and $250,000 fines.
- Willful Failure to File a Tax Return (26 U.S.C. § 7203): Up to 1 year in prison and $100,000 fines for individuals.
- Willful Failure to Collect or Pay Over Withholding Tax (26 U.S.C. § 7202): Up to 5 years and $250,000 fines, often targeting business owners via Trust Fund Recovery Penalty.
- Preparing False Returns (26 U.S.C. § 7206): Felony for knowingly filing false documents, with up to 3 years and $250,000 penalties.
- Aiding and Abetting Tax Fraud (26 U.S.C. § 7206(2)): Assisting others in evasion, same penalties as evasion.
- Stacking of Corporate and Individual Tax Liabilities: Piercing the corporate veil for personal liability in evasion schemes.
- False Withholding Statements: Falsifying Forms W-2 or 1099.
- Conspiracy to Impede or Defeat Tax Collection (26 U.S.C. § 371): Up to 5 years for plotting to defraud the U.S.
- Tax Structuring Crimes (31 U.S.C. § 5324): Avoiding reporting thresholds for cash transactions over $10,000.
Prosecution Defense Strategies: Building a Robust Case
Defending against IRS criminal tax prosecutions requires proving lack of criminal intent—willfulness is the cornerstone of nearly all charges under the Internal Revenue Code. At The Wilson Firm, our strategies emphasize early intervention to derail investigations, challenge evidence, and negotiate resolutions before indictment. With IRS CI's high conviction rate (90% in FY24), proactive defenses are essential.
Our approach minimizes exposure, often resolving cases pre-indictment through voluntary disclosures or administrative settlements.
Key Defense Tactics
Lack of Willfulness
Demonstrate actions were due to honest mistakes, reliance on tax professionals, or reasonable cause (e.g., medical issues or business turmoil), negating the "bad faith" element required for conviction. We use expert witnesses, contemporaneous records, and timelines to show no intent to defraud.
Statute of Limitations
Most charges have a 6-year window for evasion (from the due date of the return); we move to dismiss if time-barred, as the IRS often struggles with precise dates.
Challenging Evidence and Procedures
Suppress illegally obtained evidence (e.g., warrantless searches) via motions to suppress, or attack chain of custody in blockchain or financial records. In grand jury phases, we limit testimony and seek disclosure of exculpatory material under Brady rules.
Negotiated Resolutions
Pursue non-prosecution agreements, deferred prosecution, or immunity for cooperation (e.g., against co-conspirators). For first-time offenders, we advocate for diversion programs or reduced charges to civil penalties.
Trial Preparation
If indicted, we craft narratives focusing on compliance efforts, leveraging jury instructions on "willfulness" (e.g., Cheek v. United States standard requiring voluntary intent). Recent 2025 trends show increased focus on digital forensics, so we counter with cybersecurity experts.
Our approach minimizes exposure, often resolving cases pre-indictment through voluntary disclosures or administrative settlements.
Strategic Legal Guidance at Every Stage
If you believe you may be the target of an investigation by the IRS Criminal Investigation Division (CID), it's critical to act quickly. Our tax attorneys can intervene early to resolve the matter before a criminal referral is made to the Department of Justice.
If a referral has already occurred, we assist with defense strategy, plea negotiations, restitution matters, and representation during grand jury proceedings. Our team also collaborates with other criminal defense attorneys in cases involving additional white-collar allegations.
A Coordinated, Confidential Defense Approach
In criminal tax matters, we bring together a team of experienced tax professionals to deliver the highest level of representation. This includes handling all communications with authorities, developing a customized defense, and maintaining your confidentiality throughout the process.
Whether your goal is to avoid charges altogether or to navigate litigation with minimal risk, The Wilson Firm provides the experience, discretion, and strategic clarity needed during this complex process.
Frequently Asked Questions
Investigations often stem from civil audits uncovering willfulness, whistleblower tips, or patterns like repeated late filings or large cash deposits. In 2025, CI prioritizes employment tax fraud and crypto-related evasion.
Generally 6 years for evasion from the return due date; no limit for non-filing if no return was filed. We scrutinize timelines to seek dismissals.
Lack of willfulness—proving errors were unintentional, not deliberate evasion, which defeats most charges.
Yes, over 90% of cases end in pleas or diversions; we negotiate to avoid jail time, often converting to civil resolutions.
Up to 5 years per count, fines up to $250,000, restitution, and supervised release; sentences vary by harm caused.
