THE Internal Revenue Service (IRS) Criminal Investigation Division (CID) conducts investigations regarding violations of the Internal Revenue Code, the Bank Secrecy Act, and Money Laundering statutes.
What are warning signs that you may have been referred to CID?
1. The agent starts asking about your life style and spending habits.
2. The agent asks about offshore bank accounts.
3. The agent asks about safety deposit boxes and other bank deposits.
4. The agent finds that deposits materially exceed reported income via a cash deposit analysis.
5. The agent requests copies of every document that you show him.
6. The agent contacts third parties regarding payments made to you or received from you.
7. The agent insists on meeting with you despite your having a representative.
8. The agent insists on meeting in your place of business or home instead of your representative’s office.
9. Suddenly, it is difficult to communicate with the agent who stops working on your case.
10. You are visited by two special agents (the second agent’s role is to provide corroborating testimony).
Beware: Over 90 percent of indictments result in convictions. Traditional tax evasion cases make up 50% of cases. IRS hopes to increase time spent on unreported income to 70%. Scary stuff.
A Sigh of Relief: If you receive Form 4549 RAR (Revenue Agent Report), you can breathe a sigh of relief. It means that you were not referred to the CID.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].