Being contacted by an IRS Special Agent is one of the most serious events in a taxpayer’s life. This is not a civil audit or a routine inquiry; it signals the start of a formal criminal tax investigation. Special Agents work for IRS Criminal Investigation (CI), the law enforcement arm of the IRS. They are federal criminal investigators who carry badges and firearms and operate as the tax equivalent of the FBI.
💡Important: If you have been contacted by IRS Special Agents, call criminal tax attorney immediately.
The contact may occur in various forms:
- A knock on your door at home or work.
- A phone call or message left for you.
- Contact made with a spouse, relative, or business partner.
- An invitation to “talk about an issue on your tax return.”
When two IRS Special Agents appear, it means you are officially part of a criminal investigation. Upon contact, you are classified in one of three ways:
| Status | Description |
| Target | Suspected of committing a crime. The investigation is focused on you. |
| Subject | Connected to the potential criminal conduct of a target, but not the primary focus. |
| Witness | You possess information that CI wants regarding a separate target or subject. |
📘 Reference: IRS CI Official Page
What Contact from IRS Special Agents Means?
When IRS Special Agents appear or contact you, it is a definitive indication that a criminal investigation has already begun. This is an immediate crisis, as their mission is criminal prosecution, not tax assessment.
Immediate Facts You Must Understand
- Criminal Investigation Has Begun: The agents work for IRS Criminal Investigation (CI), the law enforcement arm of the IRS. This is NOT a civil audit being conducted by a revenue agent or examiner.
- Belief in a Tax Crime: CI believes a tax crime may have occurred.
- Evidence Has Been Gathered: CI agents do not contact you at the start of an investigation. They have usually already gathered initial evidence—such as bank records, third-party information, or whistleblower tips—before approaching you.
- Anything You Say Will Be Used Against You: You are under investigation, and anything you say can and will be used against you to build their case. You must immediately assert your right to counsel and decline to speak with them.
In short, contact from a Special Agent is the most severe warning sign in a tax matter.
The Three Classifications in a Criminal Tax Investigation
When IRS Criminal Investigation (CI) agents contact you, they have already classified your involvement. This classification—Target, Subject, or Witness—determines the focus of their inquiry, but CI will not disclose your status to you.
| Classification | Definition | Key Risk/Indicators |
| Target | CI believes you have committed a crime and is actively building a case with the intent to prosecute you. | Agents ask direct questions about your conduct, willfulness, intent, or knowledge. They may refuse to reassure you or request an interview without counsel. Targets should never answer questions. |
| Subject | CI believes your behavior is connected to criminal conduct and that you may have information vital to the case, even if they currently lack enough evidence to classify you as a Target. | Subjects are in high jeopardy and can become Targets very easily based on their statements to agents. |
| Witness | You are someone who has information CI wants regarding a Target or Subject, and you may not be suspected of wrongdoing yourself. | Many Witnesses become Subjects (and even Targets) after speaking to agents, as CI may uncover inconsistencies or new evidence during the interview. |
Regardless of the classification, the most dangerous moment is the initial contact. Since CI does not tell you your classification, you may assert your right to counsel before answering any questions.
What IRS Special Agents Investigate?
IRS Criminal Investigation (CI) Special Agents are focused on investigating willful violations of the U.S. Internal Revenue Code (Title 26) and related financial crimes. They focus on cases that have the greatest impact on tax administration and compliance.
| Specific Violations (IRC Code Section) | Description |
| Tax Evasion (IRC §7201) | The willful attempt to evade or defeat the assessment or payment of any tax. |
| Filing False Returns (IRC §7206(1)) | Signing and filing any return or document that one knows to be false as to any material matter. |
| Willful Failure to File (IRC §7203) | Willfully failing to file a return, supply information, or pay estimated tax. |
| Return Preparer Fraud | Fraudulent acts committed by tax professionals, such as fabricating deductions or claiming false credits for clients. |
| Payroll Tax Crimes | Failure to collect, account for, and pay over trust fund taxes (e.g., income and FICA taxes withheld from employees). |
CI also frequently investigates violations of Title 18 (General Federal Financial Crimes), such as money laundering, wire fraud, bank fraud, and structuring, especially when these crimes have a nexus to tax or financial reporting requirements.
What If I Already Spoke to the Special Agents?
It’s a common mistake for individuals to speak with IRS Special Agents out of a desire to be cooperative, to clear up a “misunderstanding,” or to avoid “looking guilty.” If you have already done this and provided statements, immediate legal intervention is critical to limit the damage.
Even if damaging statements have been made, an experienced criminal tax attorney can still dramatically change the outcome:
- Limit Further Damage: They will immediately insert themselves as the sole point of contact to ensure no further incriminating evidence is generated.
- Control the Narrative: They can argue that your statements were incomplete, misunderstood, or taken out of context due to the high-pressure, non-custodial setting.
- Refocus the Case: They will work to refocus the case back onto a civil resolution or argue against the element of willful intent necessary for criminal charges, ultimately aiming for reduced exposure or a declination of prosecution.
The earlier you secure counsel, even after initial contact, the better your chances are of mitigating the initial damage.
How Early Legal Intervention Changes the Outcome?
Early representation by an experienced criminal tax attorney is often the crucial difference between facing a felony indictment and avoiding criminal charges entirely (a deferred or declined prosecution).
📌 Strategic Actions Taken by Early Counsel
When retained immediately, an attorney can seize control of the investigation and shape its trajectory in the client’s favor:
| Strategic Intervention | Description and Outcome |
| Status Determination | The attorney can often determine your true status (Target, Subject, or Witness) by initiating careful, privileged communications with CI and, if needed, the DOJ Tax Division. |
| Communication Control | Control all communications with agents, ensuring the client never speaks directly or accidentally incriminates themselves with questions about intent or knowledge. |
| Case Shaping | Shape CI’s view of the case by proactively providing context, alternative explanations, and legal arguments that undercut the element of willful criminal intent. |
| Correcting Misunderstandings | Correct misunderstandings about transactions, third-party reporting, or accounting treatment without exposing the client to new risk, often preventing the case from maturing. |
| Scope Negotiation | Negotiate the scope of subpoenas and search warrants and challenge overbroad or improper investigative requests. |
| Remediation Paths | Explore voluntary disclosure or remediation paths where appropriate for late foreign account reporting (FBAR/FATCA) or unfiled returns. |
| Defense Preservation | Preserve defenses for later by preventing harmful statements and maintaining a clean record, which is vital if the case moves to indictment. |
📌 Why Timing is Everything?
The earlier an attorney is involved, the more options exist to resolve the matter short of prosecution:
- Before CI Contacts You: Counsel may be able to resolve issues civilly through amended returns or special disclosure procedures.
- Shortly After Contact: Counsel can still significantly influence whether CI recommends prosecution to the DOJ.
- If the DOJ Gets Involved: Early work on intent and documentation can affect charging decisions and potential plea outcomes.
Attorney–Client Privilege and the CPA Risk
In a criminal tax investigation, privilege is the ultimate protection. It allows the client to provide full, honest disclosure to their representative so a defense can be built without fear of that information being used against them.
⚠️ Attorney–Client Privilege: The Essential Shield
- Definition: Conversations between a client and their attorney about seeking or receiving legal advice are generally protected by the Attorney–Client Privilege.
- Protection: The government generally cannot compel your lawyer to testify about what you said, nor can they seize privileged documents.
⚠️ CPA / Accountant Communications Are Exposed
In contrast to the Attorney–Client Privilege, communications with a CPA or tax preparer are NOT automatically privileged in a criminal investigation.
- Vulnerability: This is a critical risk because CI can subpoena and question your accountant about your financial affairs, tax knowledge, and intent.
- Documentation Risk: Your CPA’s working papers, memos, and files can often be obtained by the governmentand used as evidence against you.
Act Now – You Are Under Criminal Investigation
If you have been contacted by IRS Special Agents—whether through a surprise visit, a card/voicemail from “IRS Criminal Investigation,” or via third parties—you are no longer in a civil dispute. You are in a high-stakes federal criminal investigation. The immediately reality is:
- You cannot talk your way out of this. Any attempt to cooperate, explain, or “clear up a mistake” will be documented and used against you as proof of knowledge and willful intent.
- You absolutely can make things worse by trying to handle CI alone or by using a representative unfamiliar with criminal law.
We specialize in defending taxpayers in IRS criminal investigations nationwide. When you are contacted by a Special Agent, we execute an immediate, comprehensive strategy to protect your rights and your freedom:
- Crisis Intervention: We intervene immediately with IRS CI to stop all direct contact and protect your rights.
- Damage Control: We stop you from making harmful, incriminating statements that could lead to felony charges.
- Privileged Defense: We build privileged, fact-based defenses using our attorneys and Kovel accountants to shield your financial information.
- Case Containment: We work relentlessly to keep your case from becoming an indictment by challenging the element of “willfulness.”
- Trial Preparation: If charges are filed, we coordinate with specialized criminal defense counsel to mount the strongest possible defense.
The government is already building its case. You need someone building yours. Contact us immediately for a confidential criminal tax consultation if IRS special agents have contacted you.
FAQs
Is an IRS special agent the same as an IRS auditor?
No. An IRS auditor (revenue agent) handles civil examinations of your return. An IRS special agent works in Criminal Investigation (CI) and investigates suspected federal crimes. If you’re dealing with a special agent, you’re dealing with criminal law enforcement.
Should I call my CPA to ask what to do?
No. Call a criminal tax attorney first. The attorney can later bring your CPA in under Kovel if needed.
Can hiring an attorney make CI think I’m guilty?
No. Retaining counsel signals that you understand the seriousness of the situation and are protecting your rights — not that you are guilty.
What if CI says I’m just a witness, not the target?
You still need counsel. Witnesses become subjects. Subjects become targets. You will not always be told when your status changes — and you can incriminate yourself about your own conduct even in a “witness” interview.
