In this session we will be focusing on the badges of fraud that IRS Civil and Criminal Investigation evaluate to determine if a fraud referral should be made or criminal tax charges brought. Additionally, we will describe the role of a Kovel accountant and when to refer a client to a tax attorney for legal advice.
- What are IRS CI’s Priorities in FY 2023?
- Describe when a civil tax case potentially rises to a criminal tax investigation.
- Understand the role of a non-attorney practitioner in a criminal tax investigation.
- Identify when to refer a client to an attorney.
Trust Fund Recovery Penalties
In this session we will define Trust Fund as it relates to business owners with employees and who is considered a responsible office if Trust Fund taxes are not paid. The failure to pay Trust Funds taxes may result in the IRS Collection Division to refer the responsible officers to the IRS Criminal Investigation Division for criminal prosecution if badges of fraud are present.
- Define Trust Fund Taxes (IRC 6672).
- Who is a Responsible Person?
- What are the Willfulness Factors?
- Preparing a Reasonable Cause Statement.