Los Angeles California Tax Attorney Blog
IRS Criminal Tax and IRS Tax Fraud – Criminal Tax Defense
California Tax Attorney – A taxpayer may utilize his privilege against self-incrimination in an IRS tax audit as to records in his possession. The IRS tax attorney-client privilege also applies in the IRS tax audit context.
The constitutional immunity against self-incrimination may be involved in an IRS tax audit or tax examination. It also applies during any IRS tax collection activity. The Internal Revenue Service’s announcement policy is that the IRS Criminal Investigation Division’s Special Agent is to advise the taxpayer at the initial meeting that he cannot be compelled to incriminate himself by answering questions or producing documents, even though the case has not yet reached the IRS tax criminal prosecution stage. This does not mean, however, that the taxpayer is protected merely because the IRS agent does not comply with that directive.