Criminal tax preparation · A practical guide
IRS Criminal Investigation vs. a Civil Audit
The same tax years can generate different kinds of government contact. Identify the actual process before building a response or assuming that a payment resolves every issue.
By Joseph De Gregorio · Federal Sentencing Reduction and Early Release Strategist
Founder and President, Sentencing Advocacy Group
Published November 5, 2026
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Different purposes require different questions
The IRS describes an audit as a review of accounts and financial information to determine whether information is reported correctly and the tax amount is correct. Criminal Investigation examines potential criminal violations. A tax adjustment, a collection notice and an investigation are not equivalent events.
An audit can generate information that leads to a criminal referral. That possibility does not mean every audit is criminal. The relevant question is what the current communications and verified circumstances show, evaluated by qualified counsel.
Use a two-track document register
Create separate entries for civil examination or collection correspondence and criminal-investigation contacts. Record the issuing office, taxpayer or entity, tax period, date, requested action and response deadline. Link each entry to the original document.
Where one document may relate to both tracks, cross-reference it rather than making inconsistent copies with different descriptions. Keep a log of what was sent, by whom, through what channel and on which date. Counsel should determine whether a response is appropriate and what it should contain.
Do not confuse payment with resolution
A payment receipt establishes a transaction. It does not by itself establish that all tax years, penalties, criminal issues or potential restitution have been resolved. Record the amount, date, intended allocation and available confirmation, then ask the responsible professionals to verify its effect.
Similarly, an amended return is a distinct event from an original filing. Preserve both versions and their supporting records. Counsel and tax professionals should advise on corrective filings; a website guide should not direct a taxpayer with criminal exposure to make a disclosure without that assessment.
Track people and responsibilities precisely
A revenue agent, revenue officer and criminal special agent have different functions. Record the official title shown rather than describing every contact simply as IRS. For the taxpayer’s team, distinguish defense counsel, tax counsel, accountants, payroll providers and preparation support.
That division helps prevent accidental gaps. One professional may be addressing current compliance while another handles the investigation. Agree on who maintains the central deadline log and how factual corrections are communicated without assuming every adviser has the same engagement or information.
Make preparation useful across changing stages
SAG can help organize the chronology and personal record under a written scope coordinated with counsel. A clear inventory identifies what exists, what is missing and which professional owns the next action. It should not merge civil liability, sentencing tax loss and restitution into one unexplained total.
If the case progresses, the organized record supports a more focused handoff for presentence preparation. Joseph can help document the person’s background, responsibilities and completed changes, while legal conclusions and financial calculations remain with the qualified professionals responsible for them.
Sources and related preparation
IRS explanation of civil audits. Source checked November 5, 2026. Agency guidance describes general processes; counsel must evaluate the rules and facts applicable to your case.
Does a civil audit prove criminal wrongdoing?
No. An audit examines tax reporting. Criminal exposure requires a separate legal assessment; counsel should evaluate any indications that the matter has moved beyond a civil examination.
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.