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The importance of accountants in criminal tax investigations

On Behalf of | Apr 18, 2022 | Uncategorized |

The IRS audits, investigates and prosecutes all kinds of taxpayers and account holders. They cannot accomplish any of their goals without using the expertise of tax accounting professionals. Accountants work with criminal investigators who find errors that are too serious to ignore. In Texas courts, they defend and prevent the prosecution of countless individuals and business owners who are marked for investigation.

The duties of forensic accountants

Forensic accountants specialize in detecting criminal actions that appear in accounting records. They are trained to detect signs of fraud, money laundering, embezzlement and other white collar crimes that appear in financial records and transactions. They look for unusual details in bank statements, receipts, cash flow statements and other records.

Using accountants to solve tax crimes

In addition, accountants specialize in reviewing tax documents to detect inaccuracies and note the differences between intentional and unintentional errors. They are the most knowledgeable experts that are called to lead criminal tax investigations. They are hired by business owners, individuals and criminal defense attorneys who need documented proof of their innocence. They are often asked by prosecutors and defense lawyers to testify as expert witnesses in court.

Their investigations do not only involve looking for incomplete or unfiled tax returns. They look for more complicated errors, such as the intentional misclassification of an employee or the inaccurate reporting of personal income. The discrepancies found in tax documents are often signs that lead to broader criminal activities.

How accountants define tax investigations

The IRS needs a really good reason to start inquiries into your tax documents and financial affairs. Forensic accountants are the leaders of tax investigations that provide the evidence that criminal defense attorneys need to prove guilt or innocence.