From the Tax Law Offices of David W. Klasing - Should You Make a Voluntary Disclosure if You Think Your Tax Advisor May Be Under Criminal Tax Investigation?

Sep 22, 2021 12:47 PM ET


It's common practice for an individual or a corporation to use a third-party tax professional to help them with their tax filings. However, if you are suspicious that your tax advisor may be the subject of a criminal tax investigation you need to take the proper precautions to make sure that you are protected. That may include making a voluntary disclosure of any suspected impropriety in your tax filings that were prepared by the individual under investigation by the IRS or State Taxing Authority.

The decision to voluntarily disclose tax information to the IRS is complex and requires an honest evaluation of your individual facts and circumstances. Your first step should be to contact a competent dually licensed Criminal Tax Defense Attorney & CPA. It is critical to obtain the help of a licensed attorney who can take you through the process of voluntary disclosure. Successfully entering the voluntary disclosure program is the most significant step to ensuring a pass on criminal tax prosecution when faced with potential criminal tax issues. The Tax Law Offices of David W. Klasing will work hard to ensure that you are protected from the criminal tax exposure that using a tax advisor under criminal tax investigation might cause. 

IRS Announces Creation of Program to Target Criminal Tax Shelter Advisors & Promoters

On April 19, the IRS released the news of the establishment of the Office of Promoter Investigations (OPI). The OPI's chief mandate is the development of strategy, programs and policy for the agency regarding abusive tax schemes and transaction matters. The dedication of a new department suggests the IRS's commitment to chasing down bad-faith tax preparers.

The OPI will be headed up by Lois Deitrich, an agent with 20 years of experience at the IRS.  Officials at the IRS expect the OPI to work in tandem with other departments across the agency to allow the IRS to increase overall capacity when investigating suspicious parties.

What is Voluntary Disclosure?

A Voluntary Disclosure is an IRS Program through which a taxpayer gains the most favorable standing with the IRS in the instance of past willful tax reporting improprieties. To put it simply, voluntary disclosure is an individual's best chance to avoid criminal prosecution for a tax matter.  The taxpayer will voluntarily provide the IRS or State Taxing Authority (where appropriate) with truthful and complete information and must cooperate with the IRS or State Tax Authority fully as the agency determines the taxpayer's actual tax liability. The IRS Criminal Investigations Office (IRS-CI) has often looked favorably upon taxpayers who come forward, engage in complete disclosure, and agree to pay an oft-reduced penalty, because it lightens their load and makes their lives just a bit easier and enhances voluntary compliance.

Voluntary disclosure is a Criminal Tax Defense Attorney's key tool in ensuring that you do not end up behind bars for what you may view as a series of simple mistakes. However, no taxpayer should attempt to undertake voluntary disclosure without the guidance of an Experienced Criminal Tax Defense Attorney. 


Contact Information:

Public Contact: Dave Klasing Esq. M.S.-Tax CPA,

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