Under scrutiny: 10 rules to follow if you're involved in an IRS criminal investigation.

• Author: Porter, Dave
• Position: LEGAL ISSUES

If you or your client ever are visited by IRS Criminal Investigation Division special agents, you'll realize it's not a normal life event. It's an experience governed by a set of rules with which you might not be familiar.

Or, you might be involved in an IRS criminal investigation in a different manner--as part of the defense team, asked to conduct forensic accounting and serve as an expert witness.

For more than 14 years, I've represented CPAs who were witnesses and targets of IRS criminal investigations, and I've retained CPAs as expert witnesses and forensic accountants. During this time, I've found that there are 10 rules CPAs should follow when dealing with a criminal investigation.

Some of these rules apply to CPAs who are targets of an investigation, some apply to CPAs as witnesses and still others apply to CPAs who might be asked to perform forensic accounting for an investigation.

1. RETAIN COUNSEL. The Sixth Amendment provides the right to counsel for a defense. Use this right. If you or your client are visited by an IRS Criminal Investigation Division special agent, you and your client need to be represented by an attorney who is experienced in handling criminal tax cases. Also, any knowledgeable tax attorney will refrain from representing both you and your client because of a potential or actual conflict of interest.

2. DO NOT SPEAK. The Fifth Amendment provides that neither you nor your client can be compelled to be a witness against yourself in a criminal case. Don't help the government build a criminal case against you by voluntarily giving information. If you are approached and questioned by special agents, you should ask them for their business cards and politely state that you do not want to answer any questions and that your attorney will contact them. Your counsel will then communicate with the IRS.

3. DO NOT BEAR FALSE WITNESS OR LIE. It is a felony to make a false statement or use a false document in any matter involving the IRS (18 U.S.C. Sec. 1001). For example, if a special agent asks you if you know someone, and you do, but for some reason you respond "No," then you have committed a felony. The government can use a false statement against you to show you are attempting to conceal other criminal conduct. So, if you speak, tell the truth. However, the better advice is to follow the second rule and remain silent.

4. DO NOT ALTER OR DESTROY EVIDENCE. It is a crime to obstruct justice by altering or destroying evidence [18...