5 Facts You Need to Know When Facing an IRS Criminal Tax Audit
Posted in Offshore Account Update on February 27, 2026 | Share
If you are facing an IRS criminal tax audit, there is a lot you need to know. Federal criminal tax charges carry the possibility of federal prison time, and even if you are able to avoid incarceration, the audit could lead to substantial liability for back taxes, interest, and fines. Learn more from Washington D.C. criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.
What You Need to Know When Facing an IRS Criminal Tax Audit
The IRS regularly conducts criminal tax audits targeting both individual and corporate taxpayers. If the IRS is targeting you or your business in one of these audits, here are five critical facts you need to know:
1. The Risks of Facing an IRS Criminal Tax Audit are Substantial
As noted above, IRS criminal tax audits can present risks for back taxes, interest, fines, and federal prison time. Under the federal tax evasion statute (26 U.S.C. Section 7201), individuals can face up to a $100,000 fine and five years of federal imprisonment, while corporations can face a fine of up to $500,000.
2. The IRS May Already Have Evidence of Tax Evasion or Tax Fraud
If you are facing a criminal tax audit, there is a good chance that the IRS already has evidence of tax evasion or tax fraud (or another tax-related offense) in its possession. When conducting criminal inquiries, the IRS makes strategic decisions about when to inform targets that they are at risk of facing federal prosecution.
3. IRS Criminal Tax Audits Can Go Back Several Years
IRS criminal tax audits can go back up to six years in most cases. As a result, defending against one of these audits can be a substantial undertaking, and targeted individuals and corporations must take a comprehensive approach to assessing their risk and formulating their defenses.
4. Voluntarily Providing Too Much Information Can Be Risky
While defending against a criminal tax audit can be a substantial undertaking, it is imperative that targeted individuals and corporations take the necessary steps to protect themselves. In particular, targeted taxpayers must be extremely careful to avoid voluntarily providing information that the IRS and DOJ may use against them.
5. Avoiding Unnecessary Consequences Requires a Strategic Defense
Regardless of the circumstances involved, when facing an IRS criminal tax audit, avoiding unnecessary consequences requires a strategic defense. The IRS and DOJ have substantial resources at their disposal, and holding individuals and corporations accountable for tax evasion, tax fraud, and other tax crimes is among their top law enforcement priorities.
Contact Washington D.C. Criminal Tax Lawyer Kevin E. Thorn
Washington D.C. criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, has extensive experience representing individuals and corporations in high-stakes criminal tax matters. If you are facing an IRS criminal tax audit, we invite you to call 202-349-4033 or contact us confidentially online to schedule a confidential consultation with Mr. Thorn today.
