Before you read further — which describes you?
Quick Answer
Tax crimes are prosecuted through four federal agencies and steps: (1) IRS Criminal Investigation (CI) conducts investigation; (2) DOJ Tax Division reviews and authorizes; (3) U.S. Attorney’s Office files charges and prosecutes; and (4) federal district court handles proceedings. The short version is that multiple DOJ components review before charges file. In our experience, this multi-step process creates opportunities for pre-indictment intervention that don’t exist in many other federal prosecutions.1
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Four steps in federal tax crime prosecution.
The Four Prosecution Steps
| Step | Agency2 |
|---|---|
| Investigation | IRS-CI |
| Review | DOJ Tax Division |
| Charging | U.S. Attorney’s Office |
| Proceedings | Federal district court |
Quick Reference
Jump to: CI, Tax Division, USAO, or court.
1. IRS Criminal Investigation
CI conducts criminal tax investigation.
If this is you: CI special agent investigating. 12-24 months typical. Evidence gathering, witness interviews, forensic accounting.
CI Phase Strategy
- Engage counsel early.
- Preserve records.
- Do not speak with CI directly.
- Evaluate voluntary disclosure.
- Prepare defense presentation.
2. DOJ Tax Division Review
Tax Division authorizes prosecution.
If this is you: Post-CI investigation. SAR submitted to Tax Division. Review for sufficiency and prosecutorial interest. Defense conference opportunity.
3. U.S. Attorney’s Office
USAO files charges and prosecutes.
If this is you: Post-Tax Division authorization. USAO files indictment or information. Lead prosecutor assigned. Trial or plea.
4. Federal District Court
Case proceeds in federal district court.
If this is you: Arraignment, pretrial, trial. Federal judge. Jury or bench trial. Sentencing post-conviction.
Under prosecution? Book consultation immediately.
Prosecution Agencies Lookup
| Agency | Role |
|---|---|
| IRS-CI | Investigation |
| DOJ Tax Division | Authorization |
| USAO | Prosecution |
| Federal district court | Adjudication |
| Court of Appeals | Review |
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Prosecution Statute
- 6-year criminal statute typical.
- Speedy Trial Act post-indictment.
- Multi-step review slows process.
Prosecution Patterns
| Situation | Outcome |
|---|---|
| Weak case | Declination possible |
| Strong case | Indictment |
| Cooperation | Reduced charges |
| Trial conviction | Guidelines sentencing |
Prosecution Flow
Investigation
CI builds case.
Authorization
Tax Division approves.
Charging and Trial
USAO files, district court adjudicates.
First 48 Hours
- Identify current stage.
- Engage counsel.
- Preserve records.
- Evaluate intervention opportunities.
- Plan strategy.
The ROI Question
Multi-step review creates intervention opportunities. Early defense engagement critical.
When to Engage
- CI contact.
- Tax Division notification.
- USAO charging.
- Any step of process.
Frequently Asked Questions
How are tax crimes prosecuted?
Four steps / agencies — IRS-CI investigation, DOJ Tax Division authorization, U.S. Attorney’s Office charging / prosecution, federal district court proceedings.
Why multiple agencies?
Tax crime specialization plus federal prosecution generally. CI: tax expertise. Tax Division: DOJ tax specialists. USAO: local prosecution.
Does every case go through all four?
Yes for federal tax prosecution. Civil cases don’t involve USAO / court typically. Criminal requires full chain.
Can prosecution be stopped mid-way?
At various stages. Tax Division can decline. USAO can decline. Judge can dismiss. Defense can secure declination.
Who decides to prosecute?
CI recommends. Tax Division authorizes. USAO charges. Multi-step approval.
Can CI prosecute directly?
No. CI investigates. Prosecution requires DOJ approval and USAO filing. Administrative then judicial.
What about state tax prosecution?
State taxes prosecuted by state authorities. CA: DOJ or district attorneys. Different process than federal.
Does DOJ Tax Division always review?
Yes for federal tax prosecution. Required internal review. Not delegable to USAO.
Can I meet with Tax Division?
Yes. Tax Division conference is defense opportunity. Present case. Argue against authorization.
How long does prosecution take?
CI: 12-24 months. Tax Division / USAO: 3-9 months. Trial: additional 6-18 months post-indictment.
Can I avoid federal court?
Only by non-prosecution / declination or plea. Once charged, federal court jurisdiction.
What’s the conviction rate?
Federal tax conviction rate extremely high — 93%+. Most resolve by plea. Trial conviction also high.
Why so high conviction rate?
Selective prosecution. Cases thoroughly vetted. Multi-step approval weeds out weaker cases. Most prosecuted cases have strong evidence.
If you have read this far, you have a notice and you are trying to understand it before doing anything that makes it worse. That instinct is correct.
The next right move is a 15-minute call. We will identify the audit type, confirm your deadline, and tell you honestly whether you need representation. There is no cost and no obligation.
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Next Steps
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