Tax Evasion 

The Law Offices of David Berg defends individuals and businesses facing federal and Texas state tax evasion charges and IRS criminal investigations.

If you are under IRS criminal investigation or have been charged with tax evasion, you are dealing with a federal prosecution process that is thorough, well-resourced, and built around a long evidentiary record. The IRS Criminal Investigation Division typically builds a case for months or years before anyone is charged. By the time an agent contacts you directly, the investigation is already well underway.

Situations We Handle

Tax evasion charges and IRS criminal investigations arise in many different contexts. David Berg has handled:

• Individuals accused of underreporting income across multiple tax years
• Business owners or executives charged with filing false returns or concealing revenue
• Clients under investigation for unreported offshore or foreign bank accounts
• Cases involving alleged tax fraud as part of a broader federal investigation (wire fraud, healthcare fraud, government contractor fraud)
• Texas state tax fraud matters alongside federal exposure
• Professionals (attorneys, physicians, accountants, financial advisors) facing IRS criminal referrals
• Clients who received a target letter from the Department of Justice Tax Division

Our Approach to Tax Evasion Cases

Tax evasion cases are built on financial records, bank statements, tax returns, and testimony from witnesses the government has often already interviewed. Understanding the full scope of the government’s case, before any formal position is taken, shapes everything that follows.

David Berg has defended complex white-collar criminal cases for more than 50 years. He has represented individuals and businesses in federal courts across the country and in Texas state courts. He builds his defense with the trial record in mind from the first day of the engagement.

The government must prove willfulness. Tax evasion under 26 U.S.C. Section 7201 requires proof that you knew your tax obligations and intentionally violated them. That is a meaningful legal standard, and it is where many tax fraud defenses are built.

What’s at Stake in a Tax Evasion Case

Federal tax evasion under Section 7201 is a felony punishable by up to three years in federal prison per count, plus fines and the costs of prosecution. Filing a false return (26 U.S.C. Section 7206) carries up to three years per count. When the government charges both, and it often does, the exposure compounds.

Beyond the criminal penalties, a conviction carries consequences for professional licenses, business relationships, and personal reputation. For clients who also face civil tax liability, a criminal conviction can eliminate leverage in resolving the underlying tax dispute with the IRS.

David Berg handles both federal and Texas state tax fraud matters. State charges under the Texas Tax Code can coexist with federal exposure, particularly in cases involving sales, franchise, or payroll tax fraud.

Why the Timing of Your Call Matters

IRS criminal investigations often develop over months or years before anyone is charged. If you have received a direct inquiry from an IRS agent, a grand jury subpoena, or a target or subject letter from the Department of Justice, the investigation is already underway. How you respond in the early stages directly affects where the case goes.

The statute of limitations on most federal tax evasion charges is six years from the filing of the fraudulent return. That is a long window, and the government uses it. If you have received a target or subject letter, or if you have reason to believe an investigation has begun, early legal counsel allows for an assessment of your actual exposure before formal charges are filed.

Why David Berg

David Berg has been recognized in Best Lawyers in America for decades, including in White Collar Criminal Defense. The National Law Journal named him to its “Who’s Who of Criminal Defense Nationwide.” He is the author of The Trial Lawyer: What It Takes To Win (American Bar Association, 2018), a book on trial skills used by lawyers nationwide. He won his first case before the U.S. Supreme Court at age 28.

For clients whose tax matters overlap with other areas of legal exposure, the firm also handles commercial litigation and federal civil fraud matters. A client whose tax case intersects with government contracting fraud, healthcare billing fraud, or securities violations can work with one firm across all of it.

Frequently Asked Questions

What is the difference between tax evasion and tax avoidance?

Tax avoidance is the legal reduction of tax liability through deductions, credits, and legitimate planning. Tax evasion is the willful failure to report income, the filing of false returns, or the concealment of assets from the IRS. The line between them is intent, and proving intent is where federal tax prosecutions are won or lost.

What triggers an IRS criminal investigation?

IRS Criminal Investigation (CI) opens cases based on referrals from IRS auditors, tips from informants, leads from other federal investigations, and patterns identified through data analysis. Common triggers include large unexplained discrepancies between reported income and actual lifestyle, unreported foreign accounts, or suspicious activity reports from financial institutions. CI opens a relatively small number of cases each year, but its conviction rate is high.

Is tax evasion a federal crime or a state crime?

Federal tax evasion under the Internal Revenue Code is prosecuted in federal district court. Texas also has its own tax fraud statutes covering state taxes, including sales tax, franchise tax, and payroll withholding. In some cases, both state and federal charges arise from the same conduct. David Berg handles both.

What is the statute of limitations on federal tax evasion charges?

The federal statute of limitations for tax evasion under Section 7201 is generally six years from the date the fraudulent return was filed, or from the date the tax was due. For tax returns that were never filed, the limitations period may not begin to run at all. An attorney can assess the applicable period based on the specific facts of your matter.

Can a tax evasion charge be resolved without going to trial?

Many federal criminal cases, including tax matters, are resolved through negotiated dispositions. Whether that outcome is in your interest depends on the strength of the government’s evidence, your exposure across all charges, and what a trial verdict could realistically achieve. David Berg prepares every case for trial, which affects both how the case is built and how the government responds to any pre-trial discussions.

Do I need a criminal defense attorney or a tax attorney?

Once a matter becomes criminal, you need a criminal defense attorney. Tax attorneys and CPAs handle civil tax disputes, audits, and compliance matters. A criminal investigation or indictment is a different category of problem requiring different skills. If your situation involves both a civil tax dispute and a criminal investigation, the Law Offices of David Berg can help.

Talk to David Berg About Your Case

If you are under investigation or have been charged with tax evasion, contact the Law Offices of David Berg for a confidential consultation. We will assess your situation and tell you your options.