Dissecting Business Books and Records

Written by TaxSqueal. Posted in Blog

It is rare that tax fraud investigators or special agents are called upon to reconstruct a complete set of financial books and records to determine whether a tax crime has occurred. More commonly the analysis of existing financial records is the investigative technique employed. Such searches of business books and records are undertaken in an attempt to link financial transactions to criminal acti ...

Recovering Financial Information From Trash or Mail

Written by TaxSqueal. Posted in Blog

Special agents will sift through plastic garbage bags containing foodstuffs, dirty diapers, discarded papers, etc. in an effort to find clues or evidence that may bolster an investigation. Depending on what is discovered, a search warrant may follow or a criminal investigation may be started. Obviously tax investigators are hoping to uncover financial related records, telephone records, EZ-pass in ...

Tax Fraud and its Accompanying Red Flags

Written by TaxSqueal. Posted in Blog

Most individual and businesses (corporations, LLCs, partnerships) are required by law to pay taxes on earnings and other sources of income (Yes, even illegally derived income is taxable and must be reported). In order for prosecutors to charge the crime of tax fraud or more precisely, tax evasion three elements must generally be present in order to sustain a conviction. These three essentials must ...

The Role of an Informant in Tax Fraud Investigations

Written by TaxSqueal. Posted in Blog

An informant in a tax fraud investigation is someone who has specific knowledge of a tax crime and provides this information to the proper taxing authorities, directly or indirectly.  Informants, aka “rats” or “snitches” are generally able to supply information that otherwise is unavailable or unknown to tax investigatory agencies like the IRS. Surprisingly, credible informants may prompt ...

Indicators Of Tax Fraud

Written by TaxSqueal. Posted in Blog

When evaluating anonymous allegations of tax fraud, financial investigators are looking for certain bits of information, that when pieced together, could point to a potential pattern of deception. Oftentimes, contained within the voluminous financial and accounting records belonging to any individual taxpayer or business there are often physical indicators that may signal a pattern of tax evasion. ...