How an IRS Criminal Investigation Starts

A referral is a starting point, not a finding of guilt

The IRS describes several sources of criminal investigations, including information developed by auditors, collection personnel and investigative analysts. Information from other agencies or members of the public can also lead to review. The source of a referral does not establish that a crime occurred, and the taxpayer may not know what prompted the inquiry.

The IRS describes an initial evaluation, supervisory review, evidence gathering and a decision about whether to recommend prosecution. An investigation can also be discontinued. These are process descriptions, not a timetable or a prediction for any individual.

Build the first-contact chronology

Record the date of each notice, call, visit or request; who received it; the agency or office identified; and where the original document is stored. Separate what the document actually says from an interpretation offered by a colleague or adviser. Preserve envelopes and complete correspondence when available.

A useful chronology can begin before the first agent contact. Prior audit correspondence, amended returns, payment arrangements, changes of accountant and business reorganizations may help counsel understand the sequence. Do not assume these events caused the investigation. Label unknown connections as unknown.

Create a tax-year and entity map

List the individuals, companies, partnerships and other entities identified in actual correspondence. For each, identify the tax periods mentioned, return preparers, record custodians and available source material. Use a separate column for periods counsel asks you to collect that have not appeared in a government request.

An owner’s personal return, a company payroll return and a partnership information return are different records. Keeping them separate makes later questions easier to assign. A single folder labeled taxes rarely tells a reviewer which document supports which statement.

Preserve what exists before trying to explain everything

Keep original records intact. A later explanation should be separately dated and clearly distinguished from contemporaneous material. Ask counsel to direct preservation, collection and any response to government requests. SAG does not decide what must be produced or communicate with investigators as your legal representative.

Avoid drawing conclusions from silence. The absence of a recent call does not tell you that a matter has ended. Likewise, receipt of a document request does not by itself establish the recipient’s legal status. Counsel can evaluate the actual record and appropriate next steps.

What a preparation assignment can produce

For a defined engagement, Joseph can help organize a source-linked chronology, a record inventory, a list of missing material and a schedule for personal-history preparation. Each entry should identify its source and whether it has been confirmed. Counsel receives an organized factual working record rather than an unsupported narrative.

If the matter moves toward sentencing, preserve the distinction between the investigation chronology and the later personal record: employment, family responsibilities, treatment, documented corrective action and practical plans. Both may be important, but they answer different questions.

Sources and related preparation

IRS explanation of how criminal investigations are initiated. Source checked November 5, 2026. Agency guidance describes general processes; counsel must evaluate the rules and facts applicable to your case.

• IRS criminal investigation guide
• criminal tax records map
• shared federal investigation guide

A defined engagement with Joseph De Gregorio

Agree on the scope, records, authorized recipients and review dates before work begins. Counsel retains legal advice, strategy and submissions. SAG can deliver an indexed personal record, a chronology, a factual gap list and an agreed preparation schedule. An engagement does not automatically make every communication privileged; counsel determines the appropriate arrangements.

SAG serves clients nationwide from Freehold, New Jersey, with travel arranged for cases. Tell Joseph your current stage and next deadline. Do not send case documents or sensitive allegations through the initial website form.

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SAG is not a law firm and does not provide legal or tax advice. Courts and agencies determine outcomes. No sentence, charging decision or release date is guaranteed.