THE CRIMINAL INVESTIGATION

 

The criminal case begins when the CID decides to accept a case that has been referred to them. Remember that the IRS gathers information civilly that can be used criminally and if an agent gets enough information civilly, he will have a prime referral to the CID.  Once the referral from the civil division to the criminal division has been made, the civil division will suspend its activity and there will be a pause of several months (A large delay in hearing from the IRS maybe the result of the initiation of a criminal investigation).

 

Actually, the only way to really be ready for a criminal investigation is to always be ready for it from the beginning.  Know that you can be the object of CID harassment and educate yourself to the procedures of the IRS and your line of defense.  Then you will be ready if the CID accepts your case.

 

Once a tax-fraud case is accepted by the CID, there is a good chance that the Revenue Agent and the Special Agent will show up at your home or place of business on a surprise visit to read to you your Miranda Rights and collect all the information they can get from you regarding your situation. It is my opinion that the target of the investigation should not answer any questions.  You should ask the agents to put their questions in writing and you will contact counsel to respond to their requests for information.  I have seen Special Agents testify time and time again against the innocent individual who thinks that because he truly believes in his position that he can talk some sense into the CID.  Forget it, you can't do it and anything you say WILL be used against you.

 

Once the investigation begins, it will be reviewed every three months.  Remember that the IRS takes the position (and the courts support them) that the CID Agent may only be investigating a civil liability so they will take advantage of the issuance of third party summonses for records.  Since a third party summons is theoretically allowed only in civil matters, it seems to me to be a clear abuse of process to allow the CID to run rampant with the use of third party summonses, but they continue to do it.

 

The purpose of the quarterly conference is to make sure that if there is not enough criminal potential that the IRS doesn't get cheated on the three year statute of limitations for the civil end of the bite.  However, in the case of non-filers, a category that fits many of the individuals in the Freedom Movement, there is no statute of limitations on civil assessment; so the CID might just work on the case for a very long time.

 

Once the Special Agent thinks that he has made a case, he writes up a report and recommends criminal prosecution.  His report goes to the IRS District Counsel.  (Those are the guys who handle all the Tax Court cases.)  If you get an invitation to go to the District Counsel conference, don't bother, you might mess up and let them know all about your line of defense.

 

IRS District Counsel, by the way, rejects about 25 percent of those cases that are received from Special Agents; but if District Counsel likes the case, they pop it off to the Department of Justice which has special Criminal Attorneys to deal with the issues.

 

Of course, if the case involves a patriot, there is more likelihood that it will go to trial.   If the good ole' DOJ likes your case, they will approve it and they may either approve of an information or put the issue before a Grand Jury.  I have seen many honest individuals in the Freedom Movement who think that they can tell their story to a Grand Jury and the IRS Beast will slither back into its hole.  However, life unfortunately does not work that way.  The Grand Jury will simply use the information to help defeat the defendant.  (Once again, I highly advise against speaking with the Grand Jury).

 

        The basic problem with patriots is that they really are not "willful."  They cannot understand how the IRS employees, the Grand Jury and the twelve individuals on the juries cannot understand what they understand.  But lets face it America, the populace doesn't understand and they are going to convict you for being "willful" even though you are not.  After all, what kind of a looney tune would quit filing tax returns and write letters off to the IRS about all the things we write about if we were REALLY WILLFUL?  I hope that I am not rambling on too much, actually I am writing this article on my portable computer as I fly home from watching some Star Special Agents in a trial in Florida, so I currently have a rather jaded view of the IRS.  The point I really want to make is this:

 

You are not going to talk a special agent out of prosecuting you and you aren't going to talk the grand jury out of indicting you so shut your mouth and don't say stuff that you will regret!!!

 

Anyway, let's summarize the IRS levels of prosecution activity: First there is the Special Agent, then there follows the Special Agent/Group Manager Conference; the District Counsel Conference and the Department of Justice Conference.  After that will follow the information or the Grand Jury Investigation.  And what is the best advice for the target of a criminal investigation? (Haven't you heard of the Fifth Amendment?):  Once again, everyone:  BE QUIET, SHUT UP AND KEEP YOUR MOUTH SHUT.

 

WHAT HAPPENS AT A CRIMINAL TAX TRIAL?

 

           

            A criminal tax trial follows a specific format.  The jury trial begins with the selection of the jury.  Lawyers refer to this part of the trial as the "voir dire" which comes from the French and it means "to speak the truth." Once the jury is picked, the court will give a charge to the jury.

 

            The next principal feature of the trial is the opening statement of the prosecution.  The defense may then make an opening statement or they may waive their statement till later.

 

            The Department of Justice will then attempt to prove their case.  They will call witnesses and put their evidence before the jury.  The IRS witnesses are the most boring part of the trial.  They introduce lots of paperwork to show the jury that the defendant had income and that he willfully didn't pay his taxes.

 

            After the prosecution rests, the defense will generally file a motion to dismiss.  Once the court has denied the motion to dismiss, the defendant may present his case, although he is not required to present a case.

 

            After the defendant's case, the prosecution may call witnesses for rebuttal evidence. The prosecution may only put into evidence testimony that rebuts the direct evidence by the defense. The defense can also present rebuttal evidence.

 

            After the rebuttal case, the defendant can again present a motion to dismiss.

 

            The final stage of the trial consists of the closing arguments.  The prosecution and defense review the evidence in their case and argue the reasonable inferences that the jury can make from the evidence. The prosecution argues first, the defense attorney second, and then the prosecution gets another chance.

 

             The court will then instruct the jury; and the jury will be removed to consider the case.

 

            Finally the jury will come back with the verdict:

"Not Guilty," We hope!