Federal & State Tax Crimes 

The Law Offices of David Berg defends individuals, business owners, and executives facing federal and state tax crimes charges in Texas and courts across the country.

If the IRS has referred your case to its Criminal Investigation division, or if federal prosecutors have contacted you, your accountant, or your business, the situation has crossed into criminal territory. A civil tax dispute, even one involving substantial unpaid taxes or penalties, is resolved between you and the IRS. A criminal tax matter involves prosecutors, grand juries, and the possibility of federal prison.

Common Tax Crimes Situations We Handle

• A federal grand jury subpoena has been issued to you, your business, or your accountant
• An IRS special agent has contacted you or someone close to your financial affairs
• You’ve been told you are the subject or target of a federal tax investigation
• You’re a business owner accused of underreporting income, inflating deductions, or maintaining false records
• You work in a cash-intensive industry, and federal prosecutors are alleging unreported income
• You’re facing wire fraud or money laundering charges connected to a tax investigation
• You’re a tax preparer or CPA accused of helping clients file fraudulent returns
• Your company is under investigation for payroll tax violations or employment tax fraud
• You’re facing state tax charges in Texas, in addition to or separate from federal exposure

How We Approach Tax Crimes Defense

Tax crimes cases are built on financial records, and they are tried by prosecutors who have had those records for months or years before you know an investigation exists. The earlier a defense attorney is involved, the more options are available.

David Berg has spent more than 50 years trying state and federal criminal cases. He has defended individuals, companies, and executives accused of fraud across every category of federal prosecution. Tax crimes cases often overlap with wire fraud, mail fraud, money laundering, and related charges, and a defense has to account for all of it.

From the first day of the engagement, the work is oriented toward trial. That means examining the government’s evidence before it becomes a trial exhibit, identifying weaknesses in the prosecution’s theory, retaining the right financial and forensic accounting support, and building a factual record the jury can understand. Some cases resolve before trial. When they do, it is because the defense position is strong enough that the government comes to the table. When they do not, David Berg tries them.

He is recognized by Best Lawyers in America for White Collar Criminal Defense and named to the National Law Journal‘s “Who’s Who of Criminal Defense Nationwide.” That recognition reflects work done over five decades of criminal cases, federal and state, in Texas and across the country.

What Tax Crimes Charges Can Mean for You

Federal tax fraud and tax evasion carry serious consequences. The specific charges and the sentencing exposure they carry vary by the conduct alleged and the amount of tax loss the government attributes to the defendant.

A conviction for tax evasion under 26 U.S.C. § 7201 carries up to five years in federal prison per count. Filing a false return under § 7206 carries up to three years per count. These sentences run consecutively when prosecutors charge multiple counts across multiple years, which is common.

Beyond prison time, convictions carry substantial fines, restitution obligations, and collateral consequences of a federal felony: loss of professional licenses, damage to business interests, and permanent reputational harm.

Civil tax liability does not go away because a criminal case is pending. Federal prosecutors and the IRS civil division often work in parallel, meaning a criminal defense attorney must also account for what happens on the civil side after the case resolves.

When to Get a Defense Attorney Involved

An IRS special agent is not a revenue agent. Revenue agents conduct audits. Special agents conduct criminal investigations, and they are trained to build prosecution cases. If an IRS special agent has made contact, the investigation is already underway.

The same applies if you have received a grand jury subpoena, if federal prosecutors have reached out to your counsel or your financial advisors, or if you have reason to believe you are under scrutiny based on what is happening around you. A proffer session with the government, or any voluntary cooperation with federal investigators, should not happen without defense counsel in place. If charges have already been filed, tell us about your case.

Frequently Asked Questions

What is the difference between a civil tax matter and a criminal tax matter?

A civil tax matter involves the IRS seeking payment of taxes, interest, and civil penalties. A criminal tax matter involves the U.S. Department of Justice, federal prosecutors, and potential imprisonment. Civil and criminal proceedings can run simultaneously, and resolving one does not automatically resolve the other.

What triggers an IRS criminal investigation?

IRS Criminal Investigation typically opens cases involving suspected intentional conduct, such as willful failure to report income, deliberate falsification of records, or patterns suggesting fraud rather than error. Audits that reveal unexplained inconsistencies, tips from third parties, or referrals from other federal agencies can all initiate an investigation.

What federal agencies investigate tax crimes?

The IRS Criminal Investigation Division handles most federal tax crime cases. In cases involving money laundering, financial fraud, or organized criminal activity, investigations may also involve the FBI, the Department of Justice Tax Division, and the Financial Crimes Enforcement Network (FinCEN).

How long do federal tax investigations typically last before charges are filed?

Federal tax investigations are often measured in years. The government builds its case before making contact with a target, which means an investigation may be well advanced before the subject becomes aware of it. The six-year statute of limitations for most federal tax crimes gives prosecutors significant runway.

Can state tax charges be filed separately from federal charges?

Yes. Texas imposes its own criminal penalties for tax violations, including sales tax fraud and Comptroller-related offenses, and state prosecutors can pursue those charges independently of any federal proceeding. A client facing federal tax charges may also have parallel state exposure depending on the conduct involved.

What should I do if I receive a grand jury subpoena related to taxes?

Contact a defense attorney before responding. A grand jury subpoena is a formal legal demand, and the decisions you make about compliance, assertion of privilege, and cooperation with prosecutors have direct consequences for your case. These decisions should not be made without counsel.

Contact the Law Offices of David Berg

If you are facing a federal or state tax investigation, or if charges have already been filed, tell us about your situation. The earlier a defense attorney is involved, the more options are available to you.