Be Prepared: Guide To Handle A Tax Fraud Investigation

24 February 2015
 Categories: Law, Blog

You should understand that the IRS has complete power and unlimited resources when investigating possible tax fraud. The most important step you can take is to hire a federal defense lawyer. You will be on firmer ground with your lawyer and the following guide.

Opt to Use the 5th Amendment

The first thing the IRS may do is audit you. But you should know you have rights that can protect you during this audit. The 5th Amendment gives you the opportunity to remain silent. And it also protects you from incriminating yourself.

You should understand that claiming the 5th Amendment will probably make the IRS more interested in your case. So make sure you use this right correctly if you believe that some of the information you possess may be incriminating. And remember to contact your federal attorney as soon as possible because he or she can also offer advice during an audit.

Don't Offer To Pay Anything

Do not offer to pay any money if the IRS decides to indict you. This offer can be taken as an admission of guilt and will be used against you. 

Reconsider Your Accountant

Many people think that keeping their accountant is a good idea, but this can be a costly mistake during a tax fraud investigation. The truth is your accountant is not bound to you and may turn against you if asked by the IRS. Any information that you share with your accountant can be used against you.

You should hire a Kovel accountant who will perform all the services of a regular accountant. The only difference is a Kovel accountant is under a attorney-client privilege shield. This shield will protect your conversations from prying eyes. Talk to your federal defense lawyer about contacting a Kovel accountant you can trust. 

Make sure your attorney has the Kovel letter signed by the accountant. This letter legitimizes the attorney-client privilege and will include some of the following restrictions:

  • Your lawyer will be notified of any attempts made to inspect your documents
  • Notification of a request to surrender documents or information
  • Paperwork and information must returned in full if deemed necessary

You can ask your federal law attorney about other privileges you have with a Kovel accountant.

Remember you have a federal attorney on your side, and he or she is your employee. So use his or her knowledge, and do not be afraid to ask questions. For more information, contact a firm such as Law Offices of Craig Weintraub.