Rhode Island Federal Tax Fraud & Tax Evasion Defense Attorney

Marin & Murphy Law Firm represents individuals and business owners facing federal tax charges throughout Rhode Island. Attorney Stefanie A. Murphy brings serious felony trial experience — including a reported murder acquittal — to a practice area where most firms rely on former prosecutors with limited courtroom records. When the IRS treats your tax situation as a criminal matter rather than a civil dispute, you need defense counsel who understands federal investigation, federal sentencing, and federal trial preparation — not a tax attorney trying to negotiate with an agency that has already referred your case for prosecution. Call (401) 228-8271 for a confidential consultation.

Federal Tax Charges vs. a Tax Dispute: Why This Is Different

A tax audit is uncomfortable. A federal criminal tax investigation is existential. The distinction matters because the legal strategies, the risks, and the people involved are entirely different.

When the IRS Civil Division audits your returns, the worst realistic outcome is additional tax liability, penalties, and interest. You can negotiate. You can appeal. You retain substantial procedural protections. But when IRS Criminal Investigation opens a case, the objective is not revenue collection — it is prosecution and imprisonment. IRS-CI special agents are federal law enforcement officers who carry badges, execute search warrants, and build cases designed to result in criminal convictions.

The referral from civil to criminal is a one-way door. Once IRS-CI accepts a case, settlement is no longer on the table. The investigation is being built for a federal grand jury, and the Rhode Island U.S. Attorney’s Office will decide whether to seek an indictment. The IRS-CI Providence field office coordinates closely with federal prosecutors here, and Rhode Island’s small federal docket means tax cases receive significant attention and resources.

If your CPA, accountant, or tax attorney has told you there may be a criminal exposure, that professional has already recognized the threshold has been crossed. The next call should be to a Rhode Island federal criminal defense attorney — not another tax advisor.

What the Government Must Prove in Federal Tax Cases

Federal tax crimes require the government to prove willfulness — that you knew what the law required and deliberately chose to violate it. This is a higher burden than negligence, carelessness, or even reckless disregard. It is the element that separates criminal conduct from civil liability, and it is where most federal tax defenses are built.

The most common federal tax charges include:

Tax Evasion (26 U.S.C. § 7201) — the most serious federal tax offense, carrying up to five years in prison per count. The government must prove that a substantial tax deficiency existed, that you knew about it, and that you took affirmative steps to evade payment or assessment. Affirmative acts can include concealing income, filing false returns, maintaining double books, or using nominees to hide assets.

Filing a False Return (26 U.S.C. § 7206) — carries up to three years per count. Requires proof that a return was materially false, that you knew it was false, and that you signed it under penalty of perjury. This charge is frequently stacked alongside evasion counts to increase sentencing exposure.

Failure to File (26 U.S.C. § 7203) — a misdemeanor carrying up to one year per count, but often charged across multiple tax years, creating cumulative exposure. The government must prove that you were required to file, knew you were required to file, and voluntarily failed to do so.

Tax Obstruction (26 U.S.C. § 7212) — charged when the government alleges you interfered with IRS administration or investigation. This can include destroying records, filing false documents, or intimidating witnesses during an audit or investigation.

In every case, the willfulness requirement creates genuine defense opportunity. A taxpayer who relied in good faith on professional advice, misunderstood a complex provision, or made errors without fraudulent intent has not committed a federal crime — even if they owe significant additional tax. Attorney Murphy’s experience analyzing complex evidence and challenging the government’s narrative at trial translates directly to the factual disputes that define federal tax prosecutions. Call (401) 228-8271 to discuss your situation confidentially.

How Federal Tax Investigations Work in Rhode Island

Understanding the investigation timeline is critical because early intervention can meaningfully change outcomes.

Stage 1: IRS-CI Investigation. Most federal tax cases begin when IRS-CI special agents receive a referral — from the civil audit division, from a cooperating witness, from a whistleblower, or from another federal investigation that uncovered tax irregularities. IRS-CI investigates quietly, often for months, gathering records from banks, employers, and third parties before you know you’re a target. Agents may conduct surveillance, review financial records obtained through administrative summonses, and interview people in your personal and professional life.

Stage 2: Special Agent Report. Once the investigation is complete, the IRS-CI special agent prepares a report recommending prosecution and forwards it to the Department of Justice Tax Division or to the U.S. Attorney’s Office. The DOJ Tax Division reviews cases for legal sufficiency before authorizing prosecution — a filter that gives the government’s eventual cases a high success rate but also creates a window for defense intervention.

Stage 3: Grand Jury and Indictment. If prosecution is authorized, the case is presented to a federal grand jury. Grand jury proceedings are secret, and the target typically has no opportunity to present evidence or testimony. The indictment that results is the formal charging document.

Stage 4: Arrest or Surrender. Following indictment, you will either be arrested or given the opportunity to self-surrender through counsel. This is where having an attorney already engaged pays dividends — the difference between a coordinated surrender and an unannounced arrest at your home or workplace affects federal detention hearing outcomes, public exposure, and your immediate ability to respond.

The earlier defense counsel enters the process, the more options remain available. Federal target letter and pre-indictment defense — presenting mitigating information to prosecutors before they seek an indictment — is one of the most valuable services a federal defense attorney provides. In tax cases, where the evidence is largely documentary and the legal questions turn on intent, a well-prepared presentation to the U.S. Attorney’s Office can sometimes prevent charges from being filed at all.

Parallel Civil and Criminal Exposure

Federal tax cases frequently involve parallel proceedings — an IRS civil audit running alongside a criminal investigation, or an SEC enforcement action accompanying tax evasion charges against someone in the financial industry.

The danger in parallel proceedings is that statements made in one context can be used against you in the other. Voluntary disclosures to the civil audit division, amended returns filed after an investigation begins, or conversations with your accountant may all become evidence in a criminal prosecution. Coordinating your defense across civil and criminal tracks requires counsel who understands both — and who will not sacrifice your Fifth Amendment protections for short-term civil convenience.

Attorney Matthew T. Marin’s background in complex, multi-track litigation — including federal post-conviction practice and cases involving overlapping civil and criminal exposure — provides the structural understanding that parallel-proceedings defense demands. Combined with Attorney Murphy’s trial preparation and courtroom record, Marin & Murphy offers the dual capability these cases require.

Tax Charges That Accompany Other Federal Offenses

Tax charges in Rhode Island rarely exist in isolation. Federal prosecutors routinely add tax counts to federal wire fraud defense, federal securities fraud defense, federal money laundering and bank fraud defense, federal healthcare fraud defense, PPP loan fraud defense, Medicare fraud defense, ERTC fraud defense, federal mail fraud defense, and Rhode Island federal embezzlement defense indictments because nearly every financial crime generates unreported or misreported income.

This layering strategy serves the government’s interests in multiple ways. Tax counts add years of potential sentencing exposure, creating federal plea agreement leverage. They bring IRS-CI’s forensic accounting capabilities into the investigation. And they create additional forfeiture and restitution exposure because the IRS can assert claims against assets that might otherwise be protected.

For the defendant, multi-count indictments combining tax charges with other federal white collar crimes defense cases require defense counsel who can manage the interplay between statutes, sentencing guideline calculations, and overlapping factual theories. A defense strategy that addresses the fraud charges but ignores the tax counts — or vice versa — will produce gaps that prosecutors exploit at federal sentencing.

Sentencing in Federal Tax Cases

Federal tax sentencing is driven by the U.S. Sentencing Guidelines, which calculate offense levels primarily based on the tax loss amount. The higher the loss, the higher the guidelines range — and the longer the recommended sentence.

For tax evasion involving losses above $1.5 million, the guidelines recommend sentences well above the statutory maximum for a single count, which means multi-count convictions or upward departures become the mechanism for substantial prison terms. Even losses in the $250,000 to $550,000 range generate guidelines calculations that contemplate prison time of two years or more.

Mitigating factors matter significantly in tax cases. A defendant’s cooperation, acceptance of responsibility, payment of restitution, personal history, and the circumstances of the offense all affect the court’s sentencing decision. Federal sentencing mitigation — the process of presenting these factors persuasively to the court — is a critical component of tax defense regardless of whether the case goes to trial or resolves through a plea agreement.

Collateral consequences extend beyond prison. Federal tax convictions trigger professional licensing implications, may result in debarment from government contracts, affect immigration status for non-citizens, and create lasting reputational damage. For business owners and professionals, these collateral effects can be as devastating as incarceration itself.

Why Marin & Murphy Handles Federal Tax Defense Differently

Federal tax cases are document-intensive, procedurally complex, and turn on questions of intent that demand meticulous preparation. Attorney Stefanie A. Murphy’s approach to federal defense reflects the rigor these cases require.

Murphy has tried serious felony cases to verdict in jury trials reported by the Providence Journal — including a murder acquittal where co-defendants were serving life sentences. She has litigated post-conviction DNA challenges that required sustained forensic analysis and constitutional advocacy over years of proceedings. She is the lead editor of A Practical Guide to Trying DUI Cases in Rhode Island (MCLE New England, 2nd Edition 2024), a comprehensive legal resource reflecting the same analytical depth she brings to every federal case. Prior results do not guarantee a similar outcome. The cases referenced above are described to illustrate the nature of Attorney Murphy’s trial and post-conviction practice. Every case is evaluated on its individual facts, applicable law, jurisdiction, and procedural posture. Post-conviction matters described as ongoing remain in active litigation, and no outcome has been adjudicated.

This background matters in tax defense because IRS-CI builds its cases on documentary evidence — bank records, tax returns, financial statements, third-party records — that require the same kind of systematic, detail-oriented analysis that complex forensic cases demand. The willfulness element in tax prosecutions is proven or disproven through circumstantial evidence: what did you know, when did you know it, and what did your conduct reveal about your intent? Answering those questions at trial requires an attorney who can command a courtroom, cross-examine forensic accountants, and present a coherent narrative to a jury.

Attorney Marin’s experience in post-conviction litigation and his recognition in Rhode Island Lawyers Weekly as counsel driving statewide legal challenges adds appellate and procedural depth to the defense team. Tax cases frequently involve suppression issues — the admissibility of documents obtained through administrative summonses, the use of statements made during civil audits, and the boundaries between civil cooperation and criminal self-incrimination — that require counsel comfortable operating at the constitutional level.