3 Important IRS Criminal Tax Audit Mistakes You Should Not Avoid

If you’re facing a criminal tax audit in Maryland, your actions now matter more than ever. This isn’t a regular IRS review—it’s a deep investigation that could lead to serious criminal charges like tax fraud or evasion. What you say, do, or choose not to say can all be used as evidence. In this blog, we’ll walk you through the three biggest mistakes people make during an IRS criminal tax audit, why they’re risky, and how a Maryland criminal tax attorney can help guide you through the process.

What Not To Do During an IRS Criminal Tax Audit

1. Do Not Make False Statements to Revenue Agents or Investigators

One of the worst things you can do is lie or give misleading information to an IRS investigator. Even small lies can lead to big problems. In many criminal tax cases, the original mistake might have been fixable. But once false statements are made, things get worse—fast.

IRS criminal investigators are trained to spot lies. They’ve reviewed financial records, bank activity, and your tax history before even speaking with you. If they catch you in a lie, it could result in a felony charge for making a false statement to a federal agent.

This applies to written statements too. Whether it’s an email or a signed document, false information can be used against you in court.

Local Note: In Maryland, IRS criminal tax audits are often handled out of the Baltimore IRS office or through the regional Criminal Investigation Division. If you’re approached by an agent in Maryland, don’t panic—stay calm, and get legal advice before answering questions.

Tip: Always speak with a qualified tax attorney before saying anything. They can help you understand what to say—and what not to say.

2. Do Not Withhold Information You Are Required to Disclose

Trying to hide information from the IRS rarely works. If they ask for documents you’re legally required to provide—like tax returns, business records, or bank statements—don’t ignore the request. Delaying or hiding information can be seen as obstruction.

It’s also important to avoid deleting files or destroying paper records. That could raise suspicion and might lead to charges for tampering with evidence.

That said, not all information must be handed over right away. A criminal tax audit is very different from a regular audit. You have rights, including the right to remain silent and the right to have legal representation.

Local Insight: Maryland has seen an increase in audits related to high-earning professionals, small business owners, and real estate investors. If you’re one of them, know that the IRS may already have access to third-party information like bank reports or vendor statements. Working with a local Maryland criminal tax attorney who understands state-specific audit patterns can be a huge advantage.

Tip: Only disclose what is legally required—and do it with your attorney’s help.

3. Do Not Voluntarily Share Information That Isn’t Required

When under pressure, people often overshare to appear helpful. But during a criminal tax audit, that can backfire.

You might think you’re clearing things up, but sharing too much can lead the IRS to ask more questions—or worse, open up new areas of investigation.

Example: Let’s say you casually mention selling on Facebook Marketplace a few years ago. If the income wasn’t reported, it can now become part of the audit—even if it had nothing to do with the original issue.

Maryland Context: Agents working in Maryland often serve subpoenas to local banks, employers, and even clients to collect third-party records. The less you say upfront, the fewer leads they may pursue.

Tip: Speak only when necessary. Let your attorney handle the tough questions.

Why You Should Work with a Maryland Criminal Tax Attorney

When you’re dealing with a criminal tax audit in Maryland, it’s not just about taxes anymore—it’s about protecting your future. You could be looking at criminal charges, fines, or even prison time. That’s why having the right legal support matters.

At Ledingham Law, we bring years of legal experience, backed by extensive knowledge in tax defense and criminal law. 

We understand how the IRS operates, especially in Maryland. We’ve worked with individuals, small business owners, and professionals across the state—from Bethesda to Baltimore—guiding them through complex audits with clear advice and smart legal strategies.

When you work with us, we help you:

• Understand your rights and risks

• Respond appropriately to IRS requests

• Protect yourself from saying too much

• Build a strong legal defense if needed

What Happens If You Ignore a Criminal Tax Audit?

Ignoring the IRS won’t make the problem go away. In fact, silence can be seen as guilt. If the IRS moves forward without your input, you lose the chance to defend yourself or explain honest mistakes. That’s why early action is key.

Many people think only guilty individuals need a lawyer—but that’s not true. Even honest taxpayers can find themselves in legal trouble if they make the wrong move during an audit.

Conclusion: Protect Your Future

A criminal tax audit is serious. Don’t take chances with your freedom or your financial future. Whether you live in Baltimore, Columbia, Rockville, or anywhere in Maryland, having a trusted attorney on your side can make all the difference.

Book a consultation with us today and get clear, professional guidance from a team that understands Maryland tax law inside and out.