We represent individuals and organizations in connection with investigations, audits, and criminal and civil litigation conducted by the Internal Revenue Service, Department of Justice and state authorities. Our cases involve allegations of tax evasion, offshore banking violations, money laundering and related offenses. In addition, we counsel clients on compliance with Title 31 of the U.S. Code, the Foreign Account Tax Compliance Act (FATCA) and other provisions of the Internal Revenue Code.
Our attorneys include former federal prosecutors and IRS litigators with broad and deep experience in tax enforcement. In particular, we understand how IRS Criminal Investigation (IRS-CI), DOJ Tax Division, and U.S. Attorneys’ offices throughout the country build criminal tax cases. We understand the strengths and weaknesses of these cases, as well as the roles and perspectives of the IRS and DOJ personnel who investigate, authorize and prosecute them. We bring this nuanced understanding to bear in advising our clients, avoiding indictment where possible, defending against tax charges and minimizing penalties. As detailed below, our experience encompasses a number of areas that have recently been the focus of IRS and DOJ scrutiny, including tax shelters, offshore banking, the tax-exempt sector and employment tax enforcement.
We successfully defend clients in a wide range of investigations, audits, and criminal and civil litigation conducted by federal agencies and state authorities:
- Represented partners and principals of Big Four accounting firms in connection with a DOJ investigation of the marketing of tax avoidance strategies. No criminal charges were brought against our clients.
- Secured declination of prosecution for a hedge fund executive in connection with DOJ, IRS and SEC investigations of alleged use of offshore trusts to evade income tax and SEC reporting requirements.
- Represented a former executive of a publicly held company in an IRS investigation involving his investments in limited partnerships that the IRS considered sham tax shelters.
- Represented an accounting firm in an investigation of its client’s failure to report offshore income to the IRS.
- Secured declination of prosecution for a doctor accused of diverting funds from his practice.
- Persuaded IRS-CI not to seek prosecution of an attorney alleged to have systematically excluded foreign receipts from his gross income.
- Successfully represented the former CEO and chairman of the board at PECO and Exelon Corporation in a tax refund fraud trial before the United States District Court for the District of Wyoming. The court agreed with our position that our client acted with reasonable cause and in good faith when he invested in a $20 million tax shelter. The client received a refund of more than $5.5 million in previously paid penalties and interest as a result of the court’s decision.
- Represented an investment management company and its affiliates in one of the largest state tax and False Claims Act controversies in New York state history, resolving claims relating to the apportionment of hedge fund gross receipts.