Client was the subject of a Criminal Tax Investigation, being conducted by the Internal Revenue Service, for failure to pay withheld payroll taxes in excess of $800,000, for the years 2016, 2017 and 2018. After engagement, I commenced a review and parallel investigation of the allegations, to determine a defense. The Criminal Investigation Division, Special Agent completed his investigation, and made a referral to the Department of Justice, in 2023. After a thorough review of over 8,000 documents, secured through discovery, I located the ‘smoking defense gun’: correspondence from an Internal Revenue Service Appellate Officer, which stated that no payment was required to be made, by client, for a two year period, toward the payroll tax liabilities in the CID referral. A further review of client’s ability to make payments would be completed after the two year period expired. At the pre-indictment conference with Department of Justice attorneys, in Washington, DC, to discuss the substance of the CID referral, prosecution was declined. Case not presented to the Grand Jury for indictment.
PRACTICE LESSON: KNOW THE LAW-KNOW YOUR CASE-STUDY THE DOCUMENTS
GREGORY C. MCCARTHY, ATTORNEY AT LAW 87 NORTH BROAD STREET DOYLESTOWN, PA 18901 PH: 215.230.5300 FX: 1-866-203-1731 EMAIL: GREGMCCARTHYESQ@AOL.COM WWW.BUCKSCOUNTYTAXATTORNEY.COM