When Does The IRS Pursue Criminal Charges: Understanding The Threshold

irs tax relief

Dealing with the Internal Revenue Service (IRS) can be daunting, especially when facing tax-related issues. While most taxpayers strive to meet their tax obligations, some may inadvertently or deliberately fail to comply with tax laws, leading to potential legal consequences. One of the most severe actions the IRS can take is pursuing criminal charges. In this article, we will explore the circumstances under which the IRS may initiate criminal proceedings, the potential consequences, and the importance of seeking professional assistance when facing tax-related challenges. Additionally, we will highlight CuraDebt’s IRS debt relief services and their expertise in navigating the complexities of IRS issues.

What Causes The IRS to Consider Pursuing Criminal Charges:

Deliberate Tax Evasion or Fraud:

The IRS may pursue criminal charges against individuals or businesses engaged in deliberate tax evasion or fraud. This includes intentionally underreporting income, claiming false deductions or credits, and concealing assets to avoid tax liabilities. If the IRS suspects intentional fraudulent activities, they may conduct a thorough investigation and refer the case to the Criminal Investigation Division (CID). The CID handles criminal tax cases and may recommend prosecution if sufficient evidence is found.

Repeated Failure to File Tax Returns:

Failing to file tax returns is a serious offense that can attract criminal penalties. If a taxpayer continuously neglects their tax filing obligations over multiple years, the IRS may interpret this as a willful attempt to evade taxes. The longer the non-compliance persists, the higher the likelihood of the IRS initiating criminal charges.

Engaging in Offshore Tax Evasion:

Hiding income or assets in offshore accounts to evade taxes is a prevalent issue that the IRS actively investigates. The IRS has stringent reporting requirements for foreign financial accounts, and failure to comply can result in severe penalties. If the IRS discovers offshore tax evasion, they may consider it a criminal offense and pursue criminal charges.

Tax-Related Identity Theft:

Tax-related identity theft occurs when someone uses another person’s Social Security number to file false tax returns and claim fraudulent refunds. The IRS takes tax identity theft seriously and actively investigates such cases. While victims of identity theft are not subject to criminal charges, the perpetrators can face serious consequences.

The Consequences of IRS Criminal Charges:

Facing criminal charges from the IRS can have severe repercussions, including:

Fines: Convicted individuals may be subject to substantial fines as part of their sentence.

Imprisonment: Tax-related criminal offenses can lead to imprisonment, depending on the severity of the charges.

Restitution: Taxpayers convicted of fraud or evasion may be required to repay the owed taxes, plus interest and penalties.

Damage to Reputation: Criminal charges can tarnish an individual’s or business’s reputation and hinder future financial opportunities.

IRS Tax Levy and Garnishment: 

In addition to criminal charges, the IRS can also take aggressive collection actions to recover unpaid tax debts. One such action is a tax levy garnishment. A tax levy allows the IRS to seize a taxpayer’s assets, such as bank accounts, wages, or property, to satisfy outstanding tax liabilities. A tax garnishment, on the other hand, involves redirecting a portion of the taxpayer’s wages directly to the IRS.

Seeking Professional Assistance:

Given the gravity of potential IRS criminal charges, it is crucial to seek professional assistance promptly if you are facing tax-related issues. Tax relief companies like CuraDebt have experienced tax professionals who can help navigate the complexities of IRS matters. They can conduct a thorough review of your financial situation, analyze any tax-related discrepancies, and provide guidance on the best course of action to resolve your tax debt and compliance issues.

CuraDebt Tax Debt Relief Services:

CuraDebt Tax is a reputable tax relief company with extensive experience in helping individuals and businesses address their tax challenges. They offer a range of tax debt relief services, including:

Tax Settlement (Offer in Compromise): CuraDebt can negotiate with the IRS on your behalf to settle your tax debt for less than the total amount owed.

Installment Agreements: They can help you set up manageable payment plans to pay off your tax debt over time.

Penalty Abatement: CuraDebt can explore options to reduce or eliminate IRS penalties that have been imposed on your tax debt and provide other IRS tax relief programs.

What resolution you qualify for depends on your financial situation.


While the IRS does not pursue criminal charges in every case of tax non-compliance, specific actions can trigger investigations and potential legal consequences. It is essential to understand the potential risks and the need to seek professional assistance when facing IRS-related challenges. CuraDebt’s comprehensive range of services, including tax audit representation, IRS debt relief programs, and assistance with unsecured debt, demonstrates its commitment to guiding individuals and businesses through the complexities of financial hardship. CuraDebt’s debt relief programs, coupled with their expertise in addressing unsecured debt, can be invaluable in creating a holistic strategy to tackle your financial concerns head-on. By enlisting the help of CuraDebt, you can rest assured that you have a dedicated partner who will work tirelessly to alleviate your tax burden, resolve your debt challenges, and help you regain financial stability.

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