Understanding the importance of legal help in case of tax investigation

Understanding the importance of legal help in case of tax investigation

US tax laws are a complex web of rules and regulations. As per these laws, every sort of income is taxable, even illegal income. The Internal Revenue Service (IRS) is responsible for the execution and enforcement of these laws. How does the IRS know of any fraudulent activity? Let's explore this avenue.

The Criminal Investigation Division, a unit of IRS, is responsible for detecting tax related crimes. Within their jurisdiction fall the cases pertaining to tax evasion and fraud, money laundering as well as the Bank Secrecy Act cases. Interestingly, only this division has the jurisdiction to take up cases regarding Internal Revenue Code violation.

The investigative analysts and associates working for this division have three core areas of responsibility.

1. Work for fraud detection and protection of revenues

2. Search and locate information for criminal investigations

3. Devise the strategies for each tax related case

Voluntary compliance to the tax laws is the norm in the US. However, in case an individual or business does not comply with these laws, the division may initiate an investigation against them. The aim is to determine whether the non-compliance was willful or not.

What is the financial investigation process? The financial investigators and analysts are capable of finding all information regarding the relevant records, e.g. bank account details, property related details, etc. These records help in analyzing the financial history of the entity and determining whether it was an intentional crime or just a mistake.

These financial investigators are also aware of the ways to get data stored on computers, even when these are in encrypted form, password protected, or protected in any such ways. If the audit and investigation prove that you were trying to commit fraud on your taxes, you may face severe penalties including imprisonment, fines, civil penalties, etc.

By now, you must have understood that a criminal investigation is not at all a good thing for you (even when you are not guilty, you can come across legal hassles). What do you do if you come to know that you were under their scanner? Get in touch with an IRS lawyer in your city as soon as possible.

Consult a Washington DC IRS lawyer with thorough knowledge of the tax laws. Apart from saving expenses, getting a lawyer from your city is helpful, as he/she would most likely have an idea about the investigation. He/she can then strategically plan how to prove that it was an unintended mistake and not an attempt to commit fraud.

If you are looking for a New York based reputed lawyer, please visit New York Attorney Directory to get the required information.

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