Tax Fraud

Forensic Accounting and Investigative Services can provide expert assistance with the resolution of civil and criminal tax matters. These types of tax fraud cases are usually based upon the taxing authorities (either Internal Revenue Service or State Department of Revenue) making complex assumptions regarding a taxpayer’s income and expenses, usually without a full analysis of all available data. These taxing authorities can estimate unreported income as high as possible to force action on the part of the taxpayer.

In tax fraud cases, the burden of proving the estimated amounts are incorrect falls on the taxpayer. That’s where Forensic Accounting and Investigative Services can help. We assist the taxpayer in analyzing and proving their income and expenses in order to properly challenge the assumptions made by a tax auditor or investigator.

Forensic Accounting and Investigative Services has the experience required to effectively challenge the taxing authorities on their calculations and proof of income and expenses. We review calculations and assertions made by the taxing authorities, render an opinion, and if necessary, provide evidence to challenge the government’s position.

Forensic Accounting and Investigative Services uses the same financial analysis methods utilized by the Internal Revenue Service and state departments of revenue for both civil and criminal tax matters. Our expertise includes:

  • Organization and analysis of accounting information
  • Reconstruction of financial documentation
  • Presentation of income and expenses
  • Analysis of calculation methods used by the government
  • Calculation of actual income and expense
  • Analysis of financial position for offers in compromise or installment agreements
  • Application of direct and indirect methods of calculating income, including lifestyle analysis, net worth analysis, bank deposit analysis, and source and application analysis