Tax crimes and prison time: 4 examples from 2017

The Internal Revenue Service (IRS) audited approximately 934,000 tax returns in 2017. The IRS conducted 70.8 percent of these audits via a mailed correspondence and 29.2 through a full field investigation.

The IRS uses these investigations to determine if tax payers are correctly reporting income and expenses. In some cases the evidence gathered during an initial investigation can result in a criminal investigation. Criminal investigations by the IRS are not uncommon. The agency conducted 3,019 criminal investigations just last year.

What types of penalties can come with a criminal investigation by the IRS?

Tax crimes can come with serious consequences. In some cases, convictions can come with a prison sentence. Here are four recent examples of cases that resulted in jail time last year.

  • Maryland. A woman in Maryland got over two years of prison time and was ordered to pay $127,180 in restitution after she was convicted for taking part in a tax-fraud scheme. The scheme involved filing refunds using stolen identities.
  • Minnesota. A man out of Minnesota was sentenced to almost three years in jail after he was convicted for failing to file tax returns for ten years. He was also accused of diverting and attempting to hide income from the IRS.
  • Florida. A man from Florida received just under two years of prison time for fabricating business expenditures to deduct on his tax returns.
  • Virginia. An investment broker from Virginia was sent to prison for five years. She developed a business plan funded by investments. Investors provided $1.1 million in funds for her business. Allegedly, the woman only used approximately $3,000 to get the business running and pocketed the remaining investments as salary. The IRS also claims that the entrepreneur neglected to properly account for the funds on her tax returns.

These examples show how an initial investigation can build into criminal tax charges. A taxpayer can reduce the risk of an audit leading to criminal penalties by building a defense to the allegations. An attorney experienced in these matters can help.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map