What happens when your client is under IRS Criminal Investigation and you prepared the return?

(1 Credit Hour of Federal Tax Law)
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When a tax professional has prepared a return that is under criminal investigation by the IRS, what steps need to be taken? How do you respond when the client calls and says, "I have a problem?" How do you disclose information to the IRS without violating the client or the preparers rights? Can the tax preparer be an expert fact witness for the client, or will they be a witness for the prosecution? How can the tax professional prevent being a target of the investigation? Have they done all the required due diligence in the preparation of the return? Do you need a lawyer? Is the government there to help you? We will discuss and provide answers for all these topics to best prepare you for a client’s potential criminal investigation should you ever find yourself in that position.


  • Identify how to answer questions from the IRS Criminal Investigators during the interview of you and your knowledge of the client's return preparation
  • Identify what information must be given to the IRS and how to manage the production of this information to the IRS
  • Recognize how to interact with your client so you do not violate the client's rights nor the accountants
  • Recognize how to provide assistance to the client and whether you can help the client in their defense
  • Identify the definition of tax loss, which is the guideline for the length of incarceration for tax crimes