Getting arrested in Connecticut for tax fraud or failure to pay your taxes is usually a federal crime in Connecticut, prosecuted by the United States Attorney’s Office, along with special agents from the Internal Revenue Service. As the best Connecticut federal tax lawyers and attorneys know, a tax fraud arrest or failure to pay arrest is the result of a very long investigation that usually starts as a civil inquiry. Connecticut IRS investigators typically audit your returns and try and sit down with taxpayers to understand the calculations in their federal tax returns. Prior to speaking with IRS auditors, however, you should consult with a forensic accountant or a top Connecticut tax criminal lawyer who has experience in working with federal prosecutors and IRS agents.
It’s a lengthy process and a technical one. Here are 3 tips for you to know right now to help you through the process…
Signing your tax returns—either by hand or by e-filing—is considered making a sworn statement to the federal government. That means you must be telling the truth in your disclosures and declarations made in your tax returns. Put more simply, your numbers must be accurate in your federal tax returns. As the best Connecticut federal tax criminal lawyers and attorneys know, you cannot hold back any money earned from the government, or keep it in a separate bank account. Just because you don’t spend the money or touch it during that tax year doesn’t mean you don’t have to declare it. And appreciate that if you’ve intentionally or recklessly made a false statement on your returns, then federal prosecutors can not only arrest you for tax fraud, but also for lying to the government, a felony crime in Connecticut more commonly known as “perjury.”
As the best federal criminal lawyers in Connecticut know, most Connecticut IRS agents do not investigate criminal matters. In fact, they are usually auditing and reviewing tax returns and issues in a civil capacity, meaning that the only consequence of their findings are monetary tax penalties and interest fees. However, when Connecticut IRS agents suspect criminal, deceptive or fraudulent misconduct by a taxpayer, they refer the case to their “Criminal Investigation Division,” also known as “CID.” As top Connecticut tax lawyers can explain, Connecticut IRS CID agents investigate tax returns and cases with an eye toward whether or not there is probable cause to arrest you for Tax Fraud or Failure to Pay Taxes. In these cases, you may receive a “target” letter in the mail signed by a federal prosecutor, informing you that you are being investigated. Do not call the federal prosecutor to discuss your case without first consulting a Connecticut criminal lawyer. Connecticut IRS CID agents will want to meet with you and your top Connecticut tax attorney, and then review the case with Connecticut federal tax prosecutors to determine whether they will seek to indict you (which means arrest you in the Connecticut federal court system). So if you are contacted by a Connecticut IRS CID / Criminal Investigation Division agent, then be sure to reach out first to any of the best top federal tax attorneys in Connecticut for guidance.
Sometimes a Connecticut failure to pay tax case can escalate to a Connecticut CID tax fraud investigation as the result of getting bad advice from your accountant or Connecticut tax lawyer. Many people are not familiar with the federal code and its complexities and nuances. That’s why you hire accountants and tax lawyers to assist in the first place. So be sure to save all your records, letters, correspondence and emails with your tax professionals. Keep them organized by year, and be sure to have your top Connecticut federal court criminal lawyer review this paperwork at the beginning of your case.
So if you received a target letter from the United States Attorney’s Office, or are being investigated in Connecticut by the Internal Revenue Service’s Criminal Investigation Division (“CID”), contact any of the Connecticut criminal lawyers at Mark Sherman Law today. Learn more about our firm by visiting our website, and see what our former clients have to say on the Avvo.com-certified online review website. Then give us a call to set up a consultation at (203) 358-4700.