the CID is at your door it means that you or someone you know is probably under criminal investigation. These investigations can take years to complete and involve interviewing friends, relatives, neighbors, business associates, bankers, employees, accountants, insurance agents, etc. If you are contacted by the CID regarding someone you know, do not lie. Be careful as anything you say could lead them back to you especially if they are investigating a business partner. The CID’s thorough investigation leads the IRS to approximately 80% of tax crimes being prosecuted.
If you are the one being investigated, do not answer any questions from the CID. Wait until the agents are gone and then contact your lawyer immediately. Do not contact the IRS for information regarding the investigation. Leave it up to your lawyer to contact them to see what is going on.
After its investigation, the CID has to decide whether to recommend prosecution or not. This will depend on how good a case they have against you. They have to be able to prove your guilt beyond a reasonable doubt so if you have some things in your favor and a good tax attorney you may just receive civil penalties instead. other than
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The primary crimes that the IRS investigates are:
1. Tax evasion
2. Filing a false tax return
3. Failure to file a tax return
If the CID recommends prosecution, the Justice Department takes over. An Assistant US Attorney will review your case and decide if the IRS should seek an indictment from a federal grand jury against you. If you are formally charged you will either be arrested or ordered to report before a federal judge. At this time you will be given the opportunity to plead guilty or not guilty. You might have to post bail or you may be released on your own recognizance.
If you plead not guilty you will eventually get a trial. This can either be by a jury or just be by a judge alone. The IRS must prove that you are guilty of the crimes as charged, guilty beyond a reasonable doubt. If you are convicted of a tax crime you will most likely go to a federal prison. If you end up reaching a plea bargain you will probably just be fined and/or placed on probation, given home confinement, or sent to a halfway house. You may also have to pay for the cost of prosecuting you. The average length of time you will serve for a tax crime is two years.
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