NCJ Number
78916
Date Published
1980
Length
25 pages
Annotation
Typical problems that confront attorneys in the defense of imcome tax evasion cases are described, and potential solutions are suggested.
Abstract
Attorneys are advised to become knowledgeable about the administrative process of income tax prosecution. The roles of various Federal Government agencies in income tax cases are delineated, including those of the Criminal Investigation Division of the Internal Revenue Service (IRS), the District Counsel, and the Criminal Section of the Department of Justice. The three elements required under section 7201 of the Internal Revenue Code are the existence of additional tax which is due and owing, an attempt to evade or defeat the tax, and willfulness. The most popular type of case an IRS agent can make is a specific item case, which involves direct proof that a taxpayer has an item of income not contained in the income tax return or attendant returns. Indirect methods of proof include the net worth method and the bank deposit method. The Federal laws which make tax offenses either felonies or misdemeanors are explained. Philosophical issues in planning the defense in an income tax case are discussed, including the need for awareness that certain strategies may be counterproductive in sentencing if the case is lost. Caution in using the fifth amendment, which may create the impression of guilt, is advised. The handling of cases involving dubious deductions from taxable income and the principles governing the use of a commissioner's summons and search warrants are delineated. The use of the defense of selective prosecution is also outlined. Governmental and defense tactics regarding aiding, abetting, conspiracy, and immunity are also discussed. Footnotes with references are provided. For related material, see NCJ 78913.