Tax Controversy and Litigation
Call for Free Consultation (410) 727-6600

Is there a difference between "tax loss" in a criminal case and tax "due and owing" in a civil proceeding?

Yes. For individuals facing criminal tax investigations, the IRS and U.S. Department of Justice will calculate a “tax loss” for purposes of the U.S. Sentencing Guidelines. The “tax loss” may be more or less than the actual tax due for a particular period because the government may calculate “tax loss” as a percentage of unreported income, unless a more accurate calculation can be made. Moreover, in criminal tax cases, some courts have refused to allow defendants to incorporate unclaimed  reductions, resulting in a “tax loss” that is much higher than the actual tax due and owing on the civil side.  Finally, if a court agrees with the government’s calculation of “tax loss,” and imposes that amount as restitution, the IRS will assess the amount as a tax and the defendant will be unable to challenge that amount in a later civil audit. If you or someone you know is the target of a criminal tax investigation, it is crucial to bring in an attorney with criminal tax experience as soon as possible.

Rosenberg Martin Greenberg

25 South Charles Street, 21st Floor MD 21201
Phone: 410-727-6600
Map & Directions

Rosenberg Martin Greenberg

705 Melvin Avenue Annapolis, MD 21401
Phone: 410-727-6600
Map & Directions