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3 Critical Mistakes to Avoid During an IRS Criminal Tax Audit in Maryland

News, Offshore Account Update

Posted in on May 31, 2024

If you are facing a criminal tax audit in Maryland (or if your company is facing a criminal tax audit in Maryland), there are some important steps you need to take right away. There are also several costly mistakes you need to avoid. These audits present significant risks, and if you aren’t careful, you could find yourself facing serious criminal charges unnecessarily.

What should you not do when facing an IRS criminal tax audit? Maryland criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

What Not To Do During an IRS Criminal Tax Audit

1. Do Not Make False Statements to Revenue Agents or Investigators

When facing an IRS criminal tax audit, you need to be very careful to avoid making false statements to revenue agents or investigators. Even if you haven’t committed a criminal violation of the Internal Revenue Code (IRC), making false statements during the IRS’ audit could lead to criminal charges under 18 U.S.C. Section 1001. This federal statute imposes fines of up to $250,000 ($500,000 for corporations) and up to five years of federal imprisonment for knowingly and willfully making “any materially false, fictitious, or fraudulent statement or representation” to a federal agent.

2. Do Not Withhold Information You Are Required to Disclose

Improperly withholding information from the IRS during a criminal tax audit can also lead to criminal charges under Section 1001. Along with prohibiting false statements, Section 1001 also makes it a federal offense to knowingly and willfully conceal or “cover up” any material fact during a federal inquiry. More likely than not, the IRS will uncover the information you are attempting to hide anyway, so it is best to focus on building and executing a strategic defense that remains within the confines of the law.

3. Do Not Voluntarily Share Information that Isn’t Required

While it is important not to unlawfully conceal or cover up information during an IRS criminal tax audit, it is equally important not to voluntarily share information that isn’t required. This includes (but is not limited to) sharing information that is protected under the attorney-client privilege or the privilege against self-incrimination.

In some cases, cooperation can be the best approach. But, before you cooperate with a criminal inquiry, you need to be certain that doing so is in your best interests and that you have secured appropriate protections. As with all aspects of defending against a criminal tax audit, this requires the advice and representation of an experienced Maryland criminal tax attorney.

Schedule a Confidential Consultation with Maryland Criminal Tax Attorney Kevin E. Thorn

Are you facing an IRS criminal tax audit in Maryland? If so, we can help, but it is important that you contact us promptly. To speak with Maryland criminal tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence as soon as possible, call 240-235-5096 or tell us how we can reach you online now.

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