An IRS investigation may feel as though it is aiming to turn your life upside down. Even if you have correctly documented your income and expenses and paid your taxes on time, you may find yourself struggling to figure out what comes next. By learning the warning signs of an upcoming tax IRS investigation in Richmond, you can prepare yourself to deal with those investigations and take any needed next steps. Reach out to our tax crime attorneys to learn more about your options.
Before an IRS investigation in Richmond begins, the following things could happen:
If an individual or business receives notice from their bank, accountant, or financial advisor that the IRS has gotten in contact and asked for their records, it could indicate that there is already a criminal investigation underway. Generally, the IRS will not request records until there is a reason to look deeper into an individual or business’s records.
Sometimes, the IRS will get in contact to discuss payment options. Individuals and businesses may already be dealing with an IRS agent because of an audit. If those contacts stop abruptly, especially if the situation has not been resolved, it could indicate that a further problem has been uncovered and the agent is beginning a more serious investigation.
Most of the time, the IRS will look more at the amount of transactions than they do at their intent. However, as they begin the deeper investigative process, they may start to question specific transactions, their intent, and how they fit within the individual or business’s larger financial picture.
If the IRS sends a formal summons, it may already indicate that there is a high level of suspicion at play. A formal interview could indicate that the IRS has serious questions about discrepancies or problems with official reporting and paperwork.
Once a CID Special Agent gets in contact, it means that the individual or business is under criminal investigation. Even if there have been no serious warning signs or problems before this time, no individual should talk to the Special Agent without a lawyer present. Reaching out to a lawyer as soon as possible can help preserve freedoms and avoid devastating consequences.
While these are not warning signs of an upcoming tax IRS investigation in Richmond, they could be signs that an individual or business’s bookkeeping is off, which could leave them facing an investigation in the future. They include:
When an individual or business has some of these warning signs, the IRS systems may flag their accounts, triggering a deeper investigation.
If you have noticed these warning signs of an upcoming tax IRS investigation in Richmond, or you already know that you are under investigation for any reason, do not wait to reach out to an experienced attorney who can make sure that you understand both your rights and your options. At Whiteford Tax Defense, we have the tools necessary to guide you through the investigation process and help you avoid potential consequences. Contact us today.