The IRS is relentless when it comes to ensuring tax compliance. If they suspect you’ve violated federal tax laws—intentionally or not—you may find yourself under intense scrutiny. While many taxpayers focus on getting their IRS tax refunds—some as high as a $3000 IRS tax refund—others may face audits or even criminal investigations instead.
Knowing how to tell if the IRS is investigating you can help you take the right steps early and avoid more serious consequences. If you’re seeing any of the signs below, it might be time to speak to a tax attorney.
Signs That the IRS Might Be Investigating You
While not always obvious, there are several signs that an IRS audit may have escalated into something more serious, such as a criminal investigation. Here are the key red flags:
1. IRS Agents or Auditors Suddenly Stop Contacting You
If you’ve been dealing with active IRS communication—frequent phone calls, emails, or letters—and that communication suddenly stops, don’t celebrate just yet. The IRS Criminal Investigation Division (CID) often takes over when the agency suspects criminal activity like tax evasion or fraud. The Examination and Collection Divisions are typically required to halt their contact so they don’t interfere with ongoing criminal proceedings.
A sudden radio silence from the IRS could mean your case is no longer in the hands of routine agents—but under criminal investigation. Don’t wait. It’s time to contact a qualified tax attorney.
2. Your Bank Records Are Being Subpoenaed
If your bank or financial institution notifies you that the IRS or the U.S. Attorney’s Office has subpoenaed your bank records, it’s a strong indicator that you’re being investigated. The same applies if your accountant is subpoenaed and ordered to bring your tax documents to a grand jury.
This is far beyond a typical audit. It signals a full criminal investigation that could threaten not just your IRS tax refunds, but your freedom.
3. The IRS Begins Reviewing Older Tax Returns
The IRS normally audits the most recent tax filings. However, if they start combing through older returns—especially those from years where you claimed a significant deduction or a $3000 IRS tax refund—they might be looking for a pattern of evasion or fraud.
This isn’t necessarily conclusive, but it’s a major warning sign. Be careful what you share with your accountant—unlike an attorney, they are not bound by confidentiality and may be required to testify.
4. A Disproportionate Focus on Specific Transactions
If the IRS is requesting unusually detailed documentation about a specific transaction or pressing to understand your “intent,” it’s possible they suspect illegal behavior. This often marks the early stages of a criminal investigation.
At this point, the agency isn’t just looking to recoup lost revenue—they’re trying to build a legal case. Having an attorney represent you during communications with the IRS can help avoid unintentional self-incrimination.
5. You’re Contacted by an IRS Criminal Investigation Division Special Agent
This is one of the clearest signs that you are under criminal investigation. These special agents may try to contact you by phone or show up unannounced. While they might seem polite and casual, their job is to gather evidence.
Exercise your constitutional right to remain silent and politely decline to speak without a lawyer present. You are not obligated to answer their questions without legal representation.
When Should You Hire a Tax Attorney?
If you’ve been informed of an audit—or notice any of the signs mentioned—it’s never too early to contact a tax lawyer. Many taxpayers wait until it’s too late, after they’ve unknowingly said or done something incriminating.
In many cases, audits that lead to denied IRS tax refunds—even a $3000 IRS tax refund—can escalate if handled poorly. Legal guidance from the beginning can protect your rights and significantly improve your chances of a positive outcome.
Let the Law Offices of Mary E. King Help You Navigate IRS Investigations
No one wants their IRS tax refund turned into a legal battle. Whether you’re dealing with a delayed $3000 IRS tax refund or signs of criminal investigation, the Law Offices of Mary E. King can help.
We’ve helped countless clients handle complex IRS issues, including audits and criminal investigations. Our experienced legal team knows exactly how the IRS operates and how to protect your interests.
