NC/State Criminal Tax Matters

A North Carolina tax problem can become more than an assessment or collection dispute. The North Carolina Department of Revenue may investigate conduct it believes was willful, refer matters for prosecution, or pursue criminal charges involving individual or business taxes. Tharrington Smith represents taxpayers throughout North Carolina in serious state tax investigations and prosecutions.

Defense in NCDOR Criminal Investigations

The North Carolina Department of Revenue’s Criminal Investigations Division investigates suspected violations of the state’s tax laws. A matter may begin after an audit, a discrepancy in filed returns, information from another agency, records obtained from a business, or a referral. Investigators may seek financial records, interview witnesses, and examine whether the conduct reflects a mistake, a reporting dispute, or an intentional violation.

Our attorneys help clients understand the nature of the inquiry and respond in a way that protects their rights. We review the relevant returns and accounting records, communicate with the government when appropriate, and work with financial professionals to evaluate the transactions at issue.

State Tax Issues We Address

• Failure to file North Carolina individual or business tax returns
• Allegedly false or fraudulent returns
• Sales and use tax collection and remittance issues
• Employee withholding and payroll tax allegations
• Corporate income and franchise tax matters
• Residency and source-of-income disputes with potential criminal exposure
• Responsible-person allegations involving owners, officers, or managers
• Voluntary disclosure and compliance concerns before agency contact

Representation for Individuals and Businesses

State criminal tax cases can affect a person’s freedom, professional standing, business operations, and finances. For a company, the investigation may also involve employees, outside accountants, customers, and large volumes of records. Tharrington Smith develops a defense based on the client’s role, the tax involved, the available records, and the evidence of intent. When a negotiated resolution is possible, we evaluate it carefully; when litigation is required, our trial lawyers are prepared to defend the case in court.

Get Advice Before Responding

If an NCDOR investigator has contacted you, avoid guessing, giving an informal explanation, or altering records. Preserve relevant materials and speak with counsel before an interview or production. Contact Tharrington Smith to discuss a North Carolina criminal tax investigation, subpoena, charge, or potential voluntary disclosure.

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