Being investigated by the Internal Revenue Service can be quite intimidating. This is particularly true if one stands accused of committing a crime — such as tax evasion. What can Connecticut residents expect if they find out they are being investigated for tax evasion?
If the IRS has questions about a tax filing, an audit will be performed. A lot of information is looked at during the audit process. If, during audit proceedings, information comes to light that suggests a person knowingly included false information on his or her tax return, a criminal investigation into the matter may be opened.
The IRS Criminal Investigation Division handles tax evasion cases. It is this department that will carefully look into the matter by gathering evidence, questioning witnesses and reviewing financial records — among other things. Once the investigation comes to a close, if deemed appropriate, the case will be passed to the Department of Justice for prosecution. The DOJ will then decide whether to pursue the case.
It is believed that less than 1% of all tax filings end up being audited. Of those, a tiny fraction are criminally investigated, and few people end up being incarcerated for actually committing tax crimes, such as tax evasion. This does not mean accusations of tax evasion are something to treat lightly. The potential consequences tied to a conviction are severe. Those in Connecticut who are being audited or investigated for tax evasion can help themselves by seeking out legal counsel who is prepared to help them go up against the IRS and fight for the best possible outcome.