Tax Crimes / Criminal Tax Defense

We represent taxpayers charged with Tax Crimes or under investigation. If you are facing a criminal tax matter, call (303) 626-7000 immediately.

When Audits Become Criminal Investigations

If you are under audit or have many years of unfiled returns, your case could lead to a tax crimes investigation. When this happens, it is critically important to:

• Secure attorney-client privilege — protect all communications from government compulsion
• Become knowledgeable of your finances — understand your complete tax picture
• Become proactive with the IRS — demonstrate willingness to comply

If you are concerned about tax fraud or evasion, call us. You have a constitutional right to attorney representation. As both a CPA and an Attorney, Philip Falco has a deep understanding of both the tax law and the criminal defense strategy required.

The Attorney-CPA Advantage in Criminal Tax Cases

Philip Falco can directly assist in becoming tax compliant while simultaneously providing legal representation. This is the necessary one-two punch: resolving the underlying tax issues while protecting your legal rights. A CPA alone cannot provide privilege. A criminal defense attorney alone may not understand the tax code. The dual-licensed Attorney-CPA provides both.

Tax Evasion: 26 USC 7201

A typical tax evasion charge alleges that the taxpayer "willfully attempted to evade and defeat income tax" owed to the United States.

The Statute

Under 26 USC 7201, tax evasion is a felony punishable by:

• Fines up to $100,000 (or $500,000 for a corporation)
• Imprisonment for up to 5 years
• Or both, plus the costs of prosecution

Three Elements the Government Must Prove

• An attempt to evade or defeat a tax — one or more affirmative acts of evasion
• A substantial tax due and owing — a tax deficiency must exist
• Willfulness — the taxpayer must have acted intentionally, not merely negligently. The government must demonstrate multiple affirmative acts showing intent.

Sentencing

Sentencing for tax evasion is governed by 18 USC 3553 and the Federal Sentencing Guidelines. Reductions in sentence are available for acceptance of responsibility — cooperating with the government and demonstrating genuine remorse can meaningfully reduce the sentence imposed.

What Constitutes Tax Evasion

Tax evasion requires the government to prove:

• Substantial unreported income — significant amounts of income not reported on tax returns
• Intent to evade — a specific intent to defeat the tax obligation
• An affirmative act — something beyond mere failure to file, such as concealing income, maintaining two sets of books, or filing false documents
• Willfulness — voluntary, intentional violation of a known legal duty

FBAR Violations

Failure to file a Report of Foreign Bank and Financial Accounts (FBAR) carries serious criminal penalties, including a potential 5-year criminal sentence. The government has increasingly prosecuted FBAR violations as standalone criminal offenses, separate from any underlying tax evasion charge.

Take Action Now

If you believe you may be under investigation for tax crimes, or if you have been contacted by IRS Criminal Investigation (CI), do not speak to anyone before consulting with an attorney. Contact Philip Falco, Attorney and CPA, at (303) 626-7000.