Criminal Investigation Division (CID) is a department in IRS which is responsible for the investigation of financial crimes in the United States. If the IRS thinks that you are involved in some kind of a tax fraud, you may face an investigation from the IRS. The Criminal Investigation Division can investigate you in case a false tax return has been filed by you, you have not filed a tax return or you
have tried to escape from taxes.
It can happen that you are not guilty at all but one thing that you must remember is you must not lie when facing an investigation from the IRS. It is best to let the investigating officials carry out their duties. Also, contacting your IRS tax attorney if you have one or hiring an IRS tax lawyer is advisable in such cases. After a thorough inquiry, if a taxpayer is found to be guilty, a criminal prosecution can be held against the accused.
If the taxpayer is not guilty he is exempted from the charges by imposing some civil penalties if required.The CID may recommend the case for prosecution and then it is taken by an assistant US Attorney General for review. If a federal grand jury indictment is sought by the IRS against the accused, the taxpayer is charged formally. This results in an order to go before a federal judge or arrest. If the accused pleads about not being guilty, a proper trial is conducted before a judge or a complete jury in some cases. In order to prove that the charges are true indeed, solid evidences are to be presented by the IRS. After considering all the evidences, if the taxpayer is found guilty without any doubt, he is sent to the federal prison. This is how a criminal prosecution by IRS is processed.