Tax Fraud and Evasion

If you are visited by an agent from IRS-CID (Criminal Investigations Division), that means that there is a criminal tax investigation occurring regarding federal tax crimes.  Many criminal tax investigations come after a civil audit occurs, which is brought about by concerns the IRS has that you or your business are not accurately reporting income.  However, just because you have not been the subject of a previous civil audit does not mean you will not become the subject of a criminal tax investigation.  That is because these investigations sometimes start after the IRS receives a tip from a “whistleblower,” such as a former employee, business partner or spouse.  They can also start if the federal authorities suspect underlying criminal activity that is generating income.  That is because criminals generally do not report the money they make from their crimes (duh), despite the fact that it constitutes taxable income.