Visit from IRS Criminal Investigation Division

[Patrick Michael]

A long time client called me this morning, crying, because two agents from the IRS criminal investigation visited her house with a subpoena for her boyfriend ordering him to turn over all his bank and tax records from 2018 to 2023.  He is a successful contractor and, apparently, has not filed taxes in many years.  He had been using a check cashing service to cash customers' checks and that led the IRS to him.  I advised her to tell her boyfriend to get an attorney immediately.  I have never dealt with anything like this, and my client asked me what is going to happen next.

Has anybody else had dealings with the criminal investigation division and knows what they may expect?

 

[kathyc2]

This is no longer a tax issue, it's a legal issue.  She should also be talking with an attorney instead of you.  Quite conceivable she could be interviewed by feds. 

[Abby Normal]

Expect pain, threats of jail time and a HUGE bill for taxes, penalties and interest. In other words, financial ruin.

[Catherine]

Lawyer up, fast. Him especially and he should start gathering information but not talk to any IRS agent (other than to say "my attorney will be speaking with you") from here on out. But she needs to, as well, as they may want to see what she knew.

You probably don't need an attorney instantly, unless she has discussed this with you other than this morning in a panic as to who to talk to. 

Green & Sklarz in Connecticut have an excellent reputation; try them.

[Sara EA]

Most likely there is a lot more to this case than just failure to file.  CI investigates major crimes like fraud, money laundering, narcotics--things that land the perpetrator in prison.  The only failure to file cases listed on the website as part of their duties are those jerks who claim income taxes are illegal.  I've sat through several presentations by CI and learned that these people carry guns, often work with the FBI, and mean business.  That said, do not discuss the case further with your client.  If you do and she is called to testify, anything she tells you is not privileged as it would be with an attorney.

[Randall]

She needs a new boyfriend.

 

[kathyc2]

19 hours ago, Abby Normal said:

Expect pain, threats of jail time and a HUGE bill for taxes, penalties and interest. In other words, financial ruin.

As well it should.  Scumbag!

[Patrick Michael]

Thanks for all the advice. She has not told me anything else about this other than what happened today.  I did tell her to make sure he gets an attorney ASAP.  When CI gets involved I know it's serious.  Her main worry is if they are going to take the house and she is going to be left homeless.  I have never met him or talked to him so I'm not worried about any involvement on my end.