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Subpoenaed by the IRS in Brooklyn? How to Handle Federal Tax Fraud Investigations
Being subpoenaed by the IRS in Brooklyn can be alarming, signaling that federal authorities are investigating you for potential tax-related violations. While receiving a subpoena does not automatically mean you are going to be charged with a crime, it does mean that the government is gathering information and evidence. The steps you take during this process can have a significant impact on the outcome of the investigation.
What Is a Subpoena From the IRS?
A subpoena is a legal command to produce information relevant to an investigation. A subpoena requires you to produce specific documents. During an IRS Brooklyn tax fraud case, a subpoena may be used to gather key evidence, such as:
- Tax returns
- Financial records
- Bank statements
- Business records
- Accounting documents
In many cases, a subpoena is only one part of a broader investigation conducted by the IRS. In the 2024 fiscal year, there were 360 federal tax fraud cases, and in the 2025 fiscal year, there were $4.5 billion in losses due to tax fraud.
If a subpoena reveals evidence that supports that you are guilty of tax fraud, it may be used as evidence against you in a criminal case. Federal tax fraud cases in Brooklyn are handled in the U.S. District Court for the Eastern District of New York, at 271 Cadman Plaza East.
What to Do if You Are Subpoenaed
If you receive an IRS subpoena, it is important to take it seriously and comply with the request. You should also contact a Brooklyn federal fraud attorney who can help you comply with the subpoena while also protecting your rights throughout the investigation.
Carefully review the subpoena and gather all the requested documents or records. Be sure to submit these records, as failing to respond can lead to additional legal consequences.
Common Types of Federal Tax Fraud Investigations
A subpoena from the IRS can happen due to a variety of allegations or types of tax fraud investigations. In total, 63.3% of investigative time is spent on tax cases. These cases include:
- Tax evasion. The IRS may look at income and bank statements to determine whether you are attempting to avoid paying taxes that you owe.
- Filing false tax returns. Investigations into filing false tax returns seek to identify discrepancies between your tax returns and your actual financial situation.
- Payroll tax violations. Investigations against business owners often reveal payroll tax violations, such as failure to withhold or remit payroll taxes.
- Fraudulent deductions or tax credits. These cases involve proving that deductions, expenses, or tax credits are false.
Your Rights and Responsibilities During a Brooklyn Tax Fraud Case
Under federal tax fraud laws, you do have certain rights and responsibilities if you have been subpoenaed by the IRS. Understanding what your duties and rights are can help you avoid issues with violating further tax fraud laws or weakening your ability to defend yourself in a tax fraud case.
You have the right to hire a tax fraud lawyer at any point during the investigation. It is a good idea to speak with a lawyer before answering questions from IRS investigators, especially if you are facing criminal charges. Additionally, you have the right to privacy and confidentiality. During an investigation, the IRS may not be more intrusive than is necessary and must act with confidentiality when handling personal and tax return information.
As a taxpayer under investigation, you have the responsibility to comply with a subpoena. You must provide the requested documents within the timeframe. You must also remain truthful, avoiding making false statements, producing false documents, or modifying or destroying documents.
Why You Should Hire a Tax Fraud Lawyer After Receiving a Subpoena
A federal tax fraud attorney can help you protect your rights during the investigation while also developing a long-term defense strategy that can help protect you from civil penalties or a criminal conviction. They can do this by:
- Explaining the subpoena requirements and helping you remain compliant
- Protecting your constitutional rights
- Communicating with the investigators and federal agencies
- Negotiating with prosecutors
- Representing you during the investigation or in court
FAQs
How Long Does It Take for Tax Fraud to Be Investigated?
The length of a federal tax fraud investigation can take several months or a couple of years, depending on the complexity of the case. An investigation is likely going to take longer if it involves a large amount of financial information, multiple individuals or businesses, or if there are difficulties obtaining evidence.
Who Investigates Federal Tax Fraud?
Federal tax fraud investigations are mainly handled by the Internal Revenue Service’s Criminal Investigation Division (IRS-CI). The IRS-CI staff and agents often search for financial records, track suspicious activity, identify errors in tax returns, and otherwise gather evidence for a Brooklyn tax fraud case. Depending on the case, IRS-CI may work alongside other agencies, such as the Department of Justice or the Federal Bureau of Investigation.
Does the IRS Have Subpoena Power?
The IRS does not have the power to issue a subpoena without judicial approval. However, they are often able to use a subpoena by working with a federal court or grand jury. Additionally, the IRS can issue a summons without court approval, which typically has the same effect as producing key tax documents during an investigation.
How Can You Stop an IRS Criminal Investigation?
There is no guaranteed way to stop an IRS criminal investigation. However, taking prompt action can still have an impact on how the investigation and any potential criminal matters are handled. An experienced tax fraud attorney can communicate with the investigators, gather exonerating evidence, and develop a strategy for responding to requests for information. This may help clear suspicion or protect your ability to defend against tax fraud charges.
Contact The Vitaliano Law Firm for Skilled Guidance
Attorney Michael Vitaliano is a former New York City Prosecutor, which means he understands how governments build and prosecute criminal cases. As a defense attorney, he uses this knowledge to build effective case strategies that stand up to aggressive prosecution.
Michael Vitaliano has also been recognized as one of New York’s top 40 under 40 criminal defense lawyers by the National Lawyers’ Association, though past results do not guarantee a similar outcome. Every case is different and must be evaluated on its own merits.
If you have received a subpoena from the IRS, contact The Vitaliano Law Firm to speak with a skilled tax fraud lawyer about your case.
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An accomplished legal advocate, Michael E. Vitaliano is the founder and principal of The Vitaliano Law Firm, based in New York City. Mr. Vitaliano is a leading criminal defense lawyer and experienced advocate in handling all criminal matters in state and federal court.
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