Concerns and Strategies in Parallel Investigations

One of the risks in eggshell civil audits -- where risk of criminal prosecution is material -- is the possibility of parallel investigations. Parallel investigations are simultaneous civil investigations and criminal investigations. These can involve the same agency and cooperating agencies (such as...

Rambo Judge Grants Mercy to Convicted Foreign Account Holder

In United States v. Purpura , 2012 U.S. Dist. LEXIS 28748 (MD PA 2012), Judge Sylvia H. Rambo granted the convicted defendant's motion to withdraw his plea of guilty to two counts of tax perjury, Section 7206(2) related to a false answer to the Schedule B foreign account question. The opinion is...

Ninth Circuit Speaks on FOIA, but Ducks Fugitive Disentitlement

A common parry in a tax criminal investigation or prosecution is to file a FOIA request with the IRS. The IRS / DOJ thrust is to resist. I provide at the end of this blog a general discussion of FOIA and the theories of resistance. In Shannahan v. United States, ___ F.3d ___, 2012 U.S. App. LEXIS...

The Taxman Cometh: IRS Audit Focus on Middle Market Companies

In a recent speech at the mid-year conference of the Tax Executives Institute, IRS Deputy Commissioner Steven T. Miller laid out the framework for the future of IRS corporate audits. To borrow Mr. Miller's own assessment, this is bad news for large corporate taxpayers in the CIC (Coordinated Industry...