Austin Tax Fraud Lawyers

Welcome to Spodek Law Group. Our mission is simple: we believe everyone deserves a fighting chance when the government comes after them. If you're reading this, something happened that made you search for tax fraud lawyers in Austin. Maybe the IRS sent a letter. Maybe federal agents showed up at your door. Maybe California's Franchise Tax Board sent a notice claiming you never really left. Whatever brought you here, you need to understand something most people don't realize until it's too late.

Austin sits in the Western District of Texas - the same border district as San Antonio, with prosecutors who developed world-class financial investigation skills tracking cartel money across international boundaries. Like all of Texas, Austin has no state income tax. But here's what the tech workers who fled California don't understand: escaping California's 13.3% tax rate doesn't mean escaping California. The FTB pursues former residents aggressively, claiming they never truly left. You moved to Silicon Hills thinking you escaped state taxes. Instead, you found yourself in a two-front war.

Most people don't realize what happens when California tech workers move to Austin. They think the move is clean. File Texas returns, stop filing California returns, save 13.3% on every dollar. That's not how California sees it. The Franchise Tax Board audits departures obsessively. They look for any evidence you still have ties to California - property, business interests, time spent in-state, even where your kids go to school. And if they conclude you're still a California resident despite your Texas address, you face back taxes, penalties, interest, and potentially criminal charges. Meanwhile, the Western District of Texas waits with prosecutors who know how to follow money across any structure. You're not facing one threat. You're facing two. If you're facing similar issues in other cities, see our guides on San Antonio tax fraud lawyers, Houston tax fraud lawyers, or San Jose tax fraud lawyers.

Texas's No-Income-Tax Reality

Heres the thing most people dont understand about tax fraud in Austin. Texas is one of only nine states with no income tax. Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire are the others. But Texas is the largest. Austin alone has over 1 million residents, with the metro area approaching 2.5 million. And everyone here faces the same reality: when it comes to income tax fraud, there only one prosecutor that matters in Texas. The federal government.

In states like New York or California, tax fraud means facing dual prosecution. Federal prosecutors build there case while state prosecutors build theres. Sometimes they coordinate. Sometimes they compete. Resources get split. Attention gets divided. A state plea deal might affect the federal calculation. There options. There room to manuver.

But in Austin? There only the Western District of Texas. IRS Criminal Investigation. FBI Financial Crimes. Thats it. Every investigator, every prosecutor, every agent - they all work for one team. There all focused on one outcome: federal conviction. There no state case running parallel. There no state plea deal to muddy the waters. Its just you versus the full weight of the federal government.

And dont think that means less resources dedicated to your case. It means MORE. The resources that would be split between federal and state in other states are concentrated entirely on federal prosecution here. IRS-CI Austin dosent have to share information with a state tax agency. They dont have to coordinate investigations. They can move faster. They can focus deeper. And they have decades of experience in exactly the kind of financial investigations that most defendants never expect.

Silicon Hills: Where California Follows You

Austin has transformed in the past decade. Tesla moved its headquarters here. Oracle relocated. Apple expanded massively. Dell has always been here. Thousands of tech workers fled California's 13.3% tax rate for Texas's 0%. They call it Silicon Hills. They thought they escaped. They were wrong.

California dosent let you go. The Franchise Tax Board has built an entire audit program around departure audits. When you move from California to a lower-tax state - Texas, Nevada, Florida - the FTB investigates. They want to know if you really left or if your just claiming you left while maintaining California residence. They look at everything. Property you still own. Business interests that remain. Time spent in California. Where your spouse works. Where your kids go to school. Your doctors, your dentists, your club memberships.

And heres were it gets brutal for Austin tech workers. Many of them have startup equity thats still vesting. They have California-based employers. They fly back to the Bay Area regularly for meetings. They kept there California homes "just in case." Every one of these connections is evidence that California uses to claim you never really left. If the FTB concludes your still a California resident, you owe back taxes at 13.3% on all your income - plus penalties, plus interest, plus potential criminal referral.

The California FTB and IRS share information. When California audits your departure and concludes you commited fraud by claiming Texas residency while remaining a California resident, that information goes to federal authorities. Now your facing California state prosecution AND potential federal charges. You moved to Texas to escape one government. You ended up facing two.

Western District of Texas: Border Expertise

Most people only think about the IRS when they think about tax fraud prosecution. Thats a mistake that destroys lives. The Western District of Texas didnt become expert in financial crimes by investigating tax cases. They became expert tracking cartel money. Drug traffickers. International smuggling operations. Money laundering networks that moved billions of dollars across borders through complex shell company structures.

Think about what that means for your case. WDTX prosecutors have spent decades following money through offshore accounts. They know how to trace transactions through multiple jurisdictions. They know how to break down corporate structures designed to hide ownership. They know how to turn witnesses who thought they were protected. The skills they developed tracking cartel finances? Those same skills work perfectly well on unreported tech income.

The forensic accounting capability in the Western District is world-class. They coordinate with federal agencies across multiple countries. They work with international law enforcement. They understand complex financial structures that would baffle investigators in other districts. When they turn that capability toward a tax fraud investigation, the results are devastating. Your clever accounting dosent impress them. Your complicated startup equity structure dosent slow them down. Theyve seen schemes ten times more sophisticated - and they broke those.

And heres the part most people miss. WDTX has a dedicated Austin division office. Austin isnt handled from San Antonio - it has its own federal prosecutors, its own presence, its own focus. The tech industry migration has brought new prosecution targets. Stock option fraud. Equity compensation manipulation. Cryptocurrency evasion. The prosecutors in Austin's WDTX office understand these structures becuase theyve been investigating them since the tech migration began.

When Your Civil Audit Becomes Criminal

An IRS audit seems like a tax problem, not a criminal one. Your dealing with a Revenue Agent, answering questions, providing documents, trying to resolve the issue. Its stressful but it feels managable. Your cooperating. Your being helpful. Your doing everything there asking. But heres what nobody tells you - that auditor is trained to spot criminal indicators. And when they find them, they refer you to Criminal Investigation without telling you.

Let that sink in. The person your cooperating with, the person your trying to help, the person your providing documents to - that person can send your file to criminal investigators and never tell you it happened. The referral happens through Form 2797. Your never notified when this form is filed. There no letter, no phone call, no warning. The civil audit continues like nothing changed, but in the background, a Special Agent has been assigned to your case and evidence gathering begins.

Everything you said during your "civil" audit - every explaination you gave trying to be helpful - is now being compiled into a criminal case against you. Your cooperation is building the prosecutions file. The helpful documents you provided about your California departure? Evidence. The detailed explainations you gave about your residency? Admissions. The questions you answered honestly about your stock options? Self-incrimination. You were building the case against yourself and you didnt even know it.

Heres the part that makes defense lawyers cringe. You might think your accountant protects you. Theres no accountant-client privilege for tax matters. None. Your accountant can be compelled to testify against you. Your CPA can be subpeonaed. Your startup CFO can be put on the witness stand. Everyone you talked to about your taxes becomes a potential witness for the prosecution. The person you hired to help you can become the governments star witness against you.

And its not just your accountant. Its your bookkeeper. Your financial advisor. Your HR department that handled your equity compensation. Your spouse who helped coordinate the California move. Anyone who knows anything about your tax situation can be compelled to testify. The prosecution dosent need your permission. They have subpeona power. And once someone starts talking to federal investigators, they tend to keep talking becuase the alternative is facing there own obstruction charges.

Federal Tax Fraud Penalties in Texas

Federal tax evasion under 26 USC 7201 carries up to 5 years in prison per count. Thats the starting point. But heres were it matters in Texas compared to other states. In New York or California, you might be able to negotiate state charges separately - work out a deal on one side that affects the other. In Texas, there IS no other side. The federal government sets the terms. You either fight them or you negotiate with them. There no state prosecutor to play against the feds.

But heres the twist for Austin tech workers. If California determines you commited fraud on your California returns - by claiming Texas residency when you were still a California resident - you ALSO face California prosecution. Even though you live in Texas. California can still charge you. California can still try you. California can still imprison you. You moved to Austin to escape California taxation. If the FTB catches you, you face prosecution in both states plus federal.

Fines for federal tax evasion can reach $100,000 for individuals and $500,000 for corporations. Plus restitution - every dollar you allegedly evaded, with interest and penalties. Plus supervised release after prison. Plus a felony conviction that follows you forever. Professional licenses revoked. Career destroyed. Reputation demolished. And for tech workers who fled California, theres the added penalty of California back taxes, California penalties, California interest - and potentially California prison time on top of federal prison time.

OK so heres were the math gets scary. Five years per count federal. If you have multiple years of fraudulent returns, thats multiple counts. If California prosecutes separately, add more time. Federal sentences are served at 85% minimum - no early release for good behavior. When the federal government says five years, they mean at least four years and three months. And if California runs consecutively, your looking at combined exposure that can exceed a decade.

Signs Your Already a Criminal Target in Austin

When federal agents contact you, the type of agent matters more then anything else. IRS Revenue Agent means civil audit - you still have time to prepare, options are still open, your not necesarily in criminal jeopardy. IRS Special Agent means criminal investigation - they've already decided your a target. If a Special Agent shows up at your door, the investigation has been running for months or years before you ever knew about it.

How do you know which type your dealing with? Special Agents carry badges and guns. Revenue Agents dont. Special Agents will introduce themselves as being from IRS Criminal Investigation. There not there to audit your return. There not there to help you resolve a tax problem. There there to gather evidence for a criminal prosecution. And by the time they show up, theyve already reviewed your returns, analyzed your brokerage statements, traced your California departure, and concluded that you probably commited a crime.

Heres the thing about Special Agents in Austin. They have access to the sophisticated financial investigation tools that WDTX developed for border crimes. They understand complex transactions. They know how to follow money across corporate structures and state lines. If your in Austin and an IRS-CI agent shows up, there bringing capabilities refined on billion-dollar investigations. Your startup equity dosent confuse them. Your California residency situation dosent impress them. Theyve seen it all before.

Your instinct will be to explain yourself. Clear things up. Show them your not a criminal. Answer there questions. Provide more documents. Cooperate fully. This is exactly what they want, and it destroys your defense. Anything you say without a lawyer present becomes evidence. Every word. Every document. Every helpful explanation about why you really did leave California. And investigators are trained to ask questions that elicit incriminating responses. They know what there doing. You dont.

The correct response is to politely decline to answer and call a tax fraud attorney immediately. Not tomorrow. Not after you "get your documents together." Not after you talk to your accountant. Immediately. Every minute you spend talking to a Special Agent without counsel is a minute your making your situation worse.

What Happens in the First 48 Hours

The moment you learn of a criminal tax investigation, a clock starts. You have 48 hours before critical options start closing. Agents are trained to extract statements fast - before you have time to think, before you can talk to a lawyer, before you understand whats happening. Every word you say without counsel is a mistake that cant be undone.

Heres what there doing while your panicking. Subpoenaing your brokerage records. Interviewing your accountant. Talking to your former California employer about your equity compensation. Requesting your travel records to see how much time you spent in California. Seizing documents. Freezing bank accounts. Building there case. Your financial life is being dismantled while you try to figure out whats happening.

And heres the part most people dont think about. Your family members can be brought in for questioning. Your spouse can be subpeonaed. Your business partners can be interviewed. Anyone who might know anything about your finances - or your California departure - can be compelled to talk. And what they say becomes evidence. Not just against you - potentialy against them too. Tax fraud investigations have a way of expanding to include everyone in orbit.

The only correct action in the first 48 hours: say nothing, sign nothing, call a tax fraud lawyer. Not a general attorney who dabbles in tax issues. Not your startup's corporate lawyer. Someone who handles federal tax crimes exclusivly. Someone who understands IRS-CI, the Western District of Texas, and California FTB pursuit. Someone whos been in the trenches. This is the one window were intervention can change everything.

Real Austin Tax Fraud Cases That Destroyed Lives

Think your to small to prosecute? Austin-area taxpayers get prosecuted regularly. Tech workers who thought there California departure was clean. Startup founders who got creative with equity compensation. Small business owners who underreported cash income. Nothing glamorous. Nothing high-profile. But the Western District dosent care about glamour. They care about proveable fraud and guaranteed convictions. The size of your operation dosent protect you.

Maybe you think your California situation is too complicated for them to sort out. It isnt. WDTX prosecutors work with California FTB regularly on cross-border residency fraud cases. The complexity of your situation dosent create immunity - it creates more opportunities for the government to find problems. More states involved means more agencies sharing information. More discrepancies to find. More charges to stack.

Heres what all these cases have in common. Everyone thought they were to smart or to complicated to prosecute. "California cant touch me in Texas." "My situation is different." "They dont have the resources to sort this out." IRS-CI has a 90% conviction rate for a reason - they only bring cases there certain to win. If your reading this because agents contacted you, your already on there radar. The question isnt wheather your going to be investigated. The question is what you do about it.

Why You Need an Austin Tax Fraud Lawyer NOW

Your reading this because something happened. An agent visit. A letter from the IRS. A notice from California FTB. A phone call from your accountant that made your stomach drop. Right now, today, you have options you wont have next week. Pre-indictment intervention can sometimes prevent charges. Voluntary disclosure programs may still be available. Cooperation agreements can be structured. Plea negotiations can begin early. But that window closes fast.

Heres were the timing matters. Before indictment, your a "target" or a "subject" - categories that have some room for manuver. After indictment, your a defendant. The charging decision has been made. The grand jury has returned a true bill. Your facing trial. Everything changes. The leverage shifts. The options narrow. The cost skyrockets.

At Spodek Law Group, we handle federal tax fraud cases. Todd Spodek has defended clients against IRS-CI, Western District of Texas prosecutors, and California FTB pursuit. We understand the unique threat your facing in Austin - where tech workers who fled California find themselves caught between California chasing them and federal prosecutors waiting. We've seen what happens when people wait. We've seen clients who talked to agents without counsel and destroyed there own cases. We've seen tech workers who thought they could handle it themselves and ended up facing charges in two states plus federal court.

The consultation is free. The cost of waiting isn't. Call 212-300-5196. The prosecutors arnt waiting for you to get organized. There building there case right now, today, while your reading this article. There interviewing witnesses. There reviewing your California departure records. There preparing charges. The question is whether you'll have representation when they make there move - or whether you'll be one more conviction in there 90% rate.

We've been doing this for years. We know how IRS-CI builds cases. We know how Western District prosecutors think. We know how California pursues former residents. We know the judges, the courtrooms, the procedures. And we know what happens to people who try to navigate this system without experienced counsel. Some of them are in federal prison right now, serving sentences that could have been avoided or reduced if they had called a lawyer earlier.

The choice is yours. But the window is closing. Every day you wait is a day the government spends building there case against you. Make the call. Protect yourself. Protect your family. Protect your future. Because once the indictment comes down, protecting becomes much, much harder.