News & Analysis as of

Criminal Prosecution Tax Returns

A&O Shearman

The Supreme Court on tax fraud in connection with labor exploitation

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On July 9, 2025, the Italian Supreme Court issued a significant judgment (No. 25167/2025) concerning liability for fraudulent tax return filing through the use of invoices for non-existent transactions (Article 2 of...more

Cadwalader, Wickersham & Taft LLP

First Stand-Alone Crypto Tax Fraud Case Leads to Two-Year Prison Sentence

On December 12, 2024, the U.S. Department of Justice (“DOJ”) announced that Frank Richard Ahlgren III was sentenced to two years in prison for filing a false tax return underreporting gains from selling $3.7 million in...more

Holland & Knight LLP

IRS Notifies Thousands of Taxpayers After Personal Information Disclosed

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The Internal Revenue Service (IRS) sent thousands of taxpayers a letter, alerting them of an unauthorized inspection or disclosure of their tax return or return information by a former IRS contractor, Charles Littlejohn....more

Mayer Brown

Relieved Taxpayers: US Tax Court Reaffirms that IRS Cannot Assess Failure-to-file Penalties

Mayer Brown on

Every parent remembers when their child learns the meaning of the word “no.” That moment often comes as a shock because, up until that moment, most children are models of obedience and unconditional trust. When children learn...more

Rodemer Kane Attorneys at Law

Tax Fraud: Simple Mistake or Serious Crime?

Taxes. Except for maybe the CPAs and tax professionals, the word alone elicits groans and sighs from even the most cheerful among us. While the necessity of taxes is rarely disputed, navigating the complex world of tax...more

Cadwalader, Wickersham & Taft LLP

Crypto: Give Unto Caesar What Is Caesar’s

Earlier this year the U.S. Department of Justice (“DOJ”) brought USA v. Ahlgren, its first crypto case with tax evasion allegations unrelated to another crime, demonstrating the DOJ’s willingness to pursue stand-alone crypto...more

ArentFox Schiff

IRS Data Leak Hits Home: Actions for Taxpayers in the Wake of the Littlejohn IRS Data Breach

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The Internal Revenue Service (IRS) has begun the process of informing over 70,000 taxpayers that their confidential tax information was leaked in a widespread breach by a former IRS contractor. Those impacted should take...more

Morgan Lewis

Recently Issued IRS Littlejohn Victim Notices May Present Challenges for Taxpayers

Morgan Lewis on

As required by law, the Internal Revenue Service (IRS) has begun issuing notification letters to victims of a former IRS contractor who illegally accessed and stole the tax return information of thousands of companies and...more

Ballard Spahr LLP

Business Better Podcast Episode: Tax Audits, Investigations, and Global Enforcement - A Conversation with IRS Special Agent...

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In this episode, we are joined by Special Agent Jonathan Schnatz, Senior Analyst with IRS Criminal Investigation. Special Agent Schnatz will discuss his work with an international law enforcement and tax compliance group, and...more

BakerHostetler

No Further Warnings - Prosecutors Bring First Pure Legal Digital Asset Tax Indictment; More Criminal Cases to Come

BakerHostetler on

After years of explicitly warning taxpayers that failing to report or underreporting income from transactions involving digital assets would lead to criminal charges, federal prosecutors are now beginning to follow through on...more

Freeman Law

Can You Go to Jail for Not Paying Your IRS Taxes?

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Taxpayers routinely ask me if they can go to jail for not paying their federal income taxes. Admittedly, the bar is not that high for felony tax evasion—the government must only prove three elements: (i) willfulness; (ii)...more

Freeman Law

IRS Voluntary Disclosures and Criminal Employment Tax Violations

Freeman Law on

Taxpayers who employ workers have obligations under federal law to withhold and remit federal employment taxes to the IRS. In addition to this withholding and payment requirement, federal law also imposes certain reporting...more

Freeman Law

IRS Criminal Investigation’s Top Ten Cases of 2021

Freeman Law on

Many (if not most) people and organizations approach a new year by setting new goals or implementing changes. This exercise, however, requires a reflection on the previous year’s events, successes, and failures. And...more

Gray Reed

IRS-Criminal Investigations Counts Down the Top 10 Cases of 2021

Gray Reed on

“The investigative work of 2021 has all the makings of a made for TV movie – embezzlement of funds from a nonprofit, a family fraud ring that stole millions in COVID-relief funds and a $1 billion Ponzi scheme used to buy...more

Gerald Nowotny - Law Office of Gerald R....

Taxing Times - July 2021

LATE RAPPER DMX OWED IRS NEARLY $700,000 IN TAXES - The influential rapper sold more than 74 million records worldwide. Rapper DMX owed the Internal Revenue Service $700,000 in unpaid taxes at the time of his death. ...more

Blank Rome LLP

Charging and Sentencing Trends of Criminal Tax Cases

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Maybe it’s not as philosophical as, “If a tree falls in the woods and nobody is there to hear it, does it make a sound?,” but the question that vexes tax professionals is, “How false does a tax return need to be before a...more

Gerald Nowotny - Law Office of Gerald R....

Taxing Times - June 2021

BIDEN TO INCREASE TAX AUDITS; MAY TARGET SMALL BUSINESSES - The president’s plan to scrutinize the tax returns of the wealthy may also target small businesses. President Joe Biden announced a plan to increase the...more

Oberheiden P.C.

Eleven of the IRS's Enforcement Priorities During the 2021 Tax Season

Oberheiden P.C. on

It is tax season once again. While the Internal Revenue Service (IRS) has extended this year’s filing deadline to May 17, 2021 for individuals, businesses must still file by April 15, and all U.S. taxpayers must ensure that...more

Gerald Nowotny - Law Office of Gerald R....

Taxing Times - April 2021

Male Escort Gets 21 Months In Prison For Tax Case - He lied on his tax returns, resulting in a tax loss to the IRS of $278,325. A male escort who lied to the IRS about his income was sentenced to 21 months in prison and...more

Gerald Nowotny - Law Office of Gerald R....

Taxing Times - March 2021

Man Faces Three Years In Prison For Tax-Evasion Scheme - He made donations to Chabad of Poway that were then funneled back to him in cash. A California man pleaded guilty to filing a false tax return as part of a...more

Gerald Nowotny - Law Office of Gerald R....

Taxing Times - February 2021

The chief financial officer of a company in Washington state was sentenced to one year and one day in prison after pleading guilty to four counts of income tax evasion. ...more

Gerald Nowotny - Law Office of Gerald R....

Taxing Times - December 2020

Former N.Y. Elected Official Sentenced To Six Months - The court also ordered the New Yorker to pay $254,628 in restitution to the IRS. A former Town of Hempstead, New York, councilman was sentenced to six months in...more

Freeman Law

Can You Go To Jail for Failing to Disclose Virtual Currency on a Tax Return or as Part of an Offer for a Collection Alternative?

Freeman Law on

Virtual currency, such as Bitcoin, continues to be a topic of interest for the IRS. Indeed, for the 2019 tax year, the IRS added for the first time a unique question to Schedule 1, Additional Income and Adjustments to...more

Polsinelli

A Crypto-Tax Indictment Goes Viral

Polsinelli on

As reported in several recent entries on this blog, IRS has been engaged in ongoing efforts to enforce the taxation of cryptocurrency transactions.. These actions have run the gamut from educating investors,  miners and...more

Hogan Lovells

Ex-Microsoft software engineer convicted of embezzling $10 million in digital value

Hogan Lovells on

A Ukrainian man living in the U.S. is facing up to 20 years in prison after being convicted of 18 federal felonies to defraud his former employer Microsoft out of more than $10 million in digital value. ...more

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