Tip # 1: Establish Your Priorities And Communicate Them To Your Client
In an eggshell audit, your goals should be the following:
• Primary Goal: To prevent a criminal referral.
• Secondary Goal: To reduce potential adjustments and tax liability.
Tip # 2: Don’t Make Your Client’s Problems Your Own
The practitioner needs to be very careful not to make the client’s problems his problems – i.e., by doing something in the course of the audit that is itself criminal or otherwise subject to penalty. There are a panoply of provisions that potentially apply to the practitioner who does too much for his client by lying or otherwise frustrating the audit process.
Two examples include I.R.C. § 7206(2) and I.R.C. § 7212. I.R.C. § 7206(2) criminalizes aiding or assisting in the presentation or preparation of a false or fraudulent document. The government will bring such a charge if it believes that the representative assisted, counseled, or advised the client to present a document knowing that it may be false as to a material matter.
I.R.C. § 7212 makes it a crime to attempt to interfere with the administration of the Internal Revenue laws. The government will bring such a charge if it believes that the representative endeavored to obstruct or impede the administration of the Internal Revenue laws.
Next: Tip # 3: Interview All Potential Witnesses As Soon As Possible
In accordance with Circular 230 Disclosure
As a former public defender, Michael has defended the poor, the forgotten, and the damned against a gov. that has seemingly unlimited resources to investigate and prosecute crimes. He has spent the last six years cutting his teeth on some of the most serious felony cases, obtaining favorable results for his clients. He knows what it’s like to go toe to toe with the government. In an adversarial environment that is akin to trench warfare, Michael has developed a reputation as a fearless litigator.
Michael graduated from the Thomas M. Cooley Law School. He then earned his LLM in International Tax. Michael’s unique background in tax law puts him into an elite category of criminal defense attorneys who specialize in criminal tax defense. His extensive trial experience and solid grounding in all major areas of taxation make him uniquely qualified to handle any white-collar case.
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