San Francisco 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 San Francisco. Maybe the IRS sent a letter. Maybe federal agents showed up at your door. Maybe your accountant called with news that made your stomach drop. Whatever brought you here, you need to understand something most people don't realize until it's too late.

San Francisco is the tech capital of the world. Apple. Google. Meta. Salesforce. Thousands of startups. Hundreds of thousands of tech workers earning substantial income through salary, stock options, RSUs, and cryptocurrency. But here's what makes San Francisco uniquely dangerous for tax fraud: the Northern District of California has spent DECADES prosecuting exactly these income types. They understand tech compensation better than most accountants. They've seen every scheme, every misunderstanding, every "mistake." And California has the HIGHEST state income tax rate in America - 13.3%. When you face tax fraud in San Francisco, you face DUAL prosecution exposure from federal prosecutors who specialize in your exact income type AND state prosecutors whose 13.3% cut gives them massive incentive to pursue you independently. If you're facing similar issues in other cities, see our guides on Seattle tax fraud lawyers, Los Angeles tax fraud lawyers, or Portland tax fraud lawyers.

Most people think being in tech means sophisticated income. They're right. But sophisticated income creates sophisticated exposure. Stock options have exercise dates and holding periods. RSUs create taxable income at vesting - not at sale. Cryptocurrency triggers tax on every transaction. Each complexity creates opportunities for mistakes. And NDCA prosecutors know every single one of those mistakes because they've prosecuted them for decades.

The Tech Capital Tax Trap

Heres the thing most people dont understand about tax fraud in San Francisco. The Northern District of California isnt just another federal district. Its the district that contains Apple, Google, Meta, Salesforce, and thousands of tech companies. For decades, NDCA prosecutors have handled tax fraud cases involving exactly the kind of compensation tech workers recieve. Stock options. RSUs. Deferred compensation. Cryptocurrency. They have seen everything.

Think about what that means for you. When your case lands on an NDCA prosecutors desk, there not learning about tech compensation for the first time. There experts. They understand RSU vesting schedules better then most HR departments. They know the difference between ISOs and NQSOs and exactly how each creates tax exposure. They understand 83(b) elections, AMT triggers, and the timing traps that catch people every year.

And heres were it gets worse. Your employer already reported your compensation to the IRS. When your RSUs vested, your company reported that income on your W-2. The evidence creates itself. If your tax return shows different income then what your employer reported, the discrepancy is automatic. There no investigation needed to find the gap. The gap announces itself. And in NDCA, prosecutors who see these cases every week know exactly how to turn that gap into a federal indictment.

OK so heres were the math gets terrifying. Say you had $500,000 in RSUs vest last year. You thought the tax was due when you sold. You didnt report it. But your employer put that $500,000 on your W-2. Now the IRS has your employer saying you made $500,000 more then your tax return shows. Thats not a audit situation. Thats not a penalty situation. Thats a federal tax evasion referral. And NDCA prosecutors who have seen hundreds of these cases know exactly how to charge it.

California's 13.3% Problem

California has the highest state income tax rate in America. Thats not an exaggeration. Thats not marketing. At 13.3%, California takes more of your income then any other state. New York caps at 10.9%. New Jersey at 10.75%. California stands alone at the top.

Heres what that 13.3% means for tax fraud exposure. Every dollar of unreported income represents 13.3 cents California wants. When you underreport $500,000, California is missing $66,500 in state tax revenue. The state has massive financial incentive to pursue that money. And unlike states with lower rates, California has built an enforcement apparatus that matches there incentive.

The California Franchise Tax Board operates a Criminal Investigation Bureau. This isnt just a civil audit division. This is a criminal prosecution unit. They investigate. They build cases. They refer for prosecution. And they do this independantly of the federal government. When the IRS investigates your federal return, California FTB can simultaneosly investigate your state return. Two investigations. Two agencies. Two potential prosecutions.

And heres the part most people miss completly. Under dual sovereignty, California can prosecute you for state tax evasion even if the federal government already prosecuted you for the same conduct. Same unreported income. Same years. Two trials. Two potential convictions. Two sentences that can run consecutivly. The highest state tax rate in America doesnt just mean higher taxes. It means the state has maximum incentive to ensure every dollar gets taxed - and maximum resources to pursue those who dont comply.

Dual Prosecution: The Two-Front War

Most people think tax fraud means IRS problems. Federal investigation. Federal prosecution. Federal prison. Theyre only seeing half the picture. In San Francisco, you face a two-front war that people from no-income-tax states simply dont understand.

Federal and state are seperate sovereigns. When the Constitution was written, the framers didnt intend to protect people from being prosecuted by both their state and the federal government for the same conduct. Double jeopardy protects you from being tried twice by the SAME sovereign. It dosent protect you from being tried by two DIFFERENT sovereigns. This is called the dual sovereignty doctrine. And in California, it creates devastating exposure.

Heres how it works in practice. The IRS investigates your federal returns. IRS-CI builds a case. The US Attorneys Office in NDCA indicts you for federal tax evasion. You go to trial. Maybe your convicted, maybe your aquitted. Either way, thats just the federal piece. California FTB has been watching. They have there own investigation. There own evidence. There own prosecutors. And they can charge you with California tax evasion for the same unreported income.

The practical reality is terrifying. Federal tax evasion: 5 years per count. California tax evasion: additional years per count. Sentences can run consecutivly. If your convicted in both systems, your total prison time isnt the higher of the two sentences. Its potentialy both sentences added together. A 4-year federal sentence plus a 3-year state sentence equals 7 years - not 4.

And prosecutors coordinate. Federal and state agencies share information. What you say to the IRS becomes available to California FTB. Documents you produce federaly can be shared with state investigators. Your trying to navigate one investigation while actualy feeding evidence into two. Thats the two-front war. Thats what makes San Francisco different from Dallas or Houston or Las Vegas.

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 RSU vesting? Evidence. The detailed explainations you gave about your stock option exercises? Admissions. The questions you answered honestly about your cryptocurrency trades? 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 employer can be subpeonaed about your compensation records. Your brokerage can produce every stock transaction you ever made. Everyone you talked to about your finances becomes a potential witness for the prosecution.

And in San Francisco, this audit-to-criminal pipeline can run twice. Federal audit becomes federal criminal investigation. Seperately, California FTB audit can become state criminal investigation. Two pipelines. Two sets of investigators. Two chances for your civil cooperation to become criminal evidence. The dual sovereignty that creates prosecution exposure also creates audit exposure.

The Math That Destroys Lives

Federal tax evasion under 26 USC 7201 carries up to 5 years in prison per count. Thats the starting point. But in San Francisco, California exposure stacks on top in ways that multiply the devastation.

Federal tax evasion: 5 years per count. California tax evasion: additional years per count. Filing false federal returns: 3 years per count. Filing false California returns: additional state penalties. Wire fraud: 20 years per count. Mail fraud: 20 years per count. And under dual sovereignty, federal and state sentences can run consecutivly.

Heres were the numbers get real. Say you understated $400,000 in tech income over three years. Federal tax loss: maybe $140,000. California tax loss: another $53,000 at 13.3%. Federal charges: tax evasion across multiple counts. California charges: additional state tax evasion counts. Two trials. Two convictions. Two sentences. The total exposure compounds in ways people from no-income-tax states never experience.

Fines for federal tax evasion can reach $100,000 for individuals. California adds state fines. Plus federal restitution - every dollar allegedly evaded, with interest and penalties. Plus California restitution. Plus potential forfeiture of property. Your tech stock. Your cryptocurrency. Your real estate. Your bank accounts. The financial destruction operates on two levels simultaneosly.

And federal sentences are served at 85% minimum. No parole. No early release for good behavior. California state sentences have there own calculation. Combined exposure from dual prosecution means your total prison time could be substantialy higher then what either jurisdiction would impose alone.

Signs Your Already a Criminal Target in San Francisco

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 W-2s, traced your stock transactions, and concluded that you probly commited a crime.

In San Francisco, watch for tech-specific warning signs. Questions about RSU vesting that seem unusualy detailed. Requests for brokerage statements showing stock option exercises. Inquiries about cryptocurrency holdings across multiple exchanges. Questions about the timing difference between when compensation vested and when you reported it. NDCA investigators have seen these patterns hundreds of times. They know what there looking for.

Also watch for California FTB activity. State audit letters that parallel federal inquiries. California investigators asking about income you thought was federal-only. Coordination between agencies that suggests information sharing. Remember - California has 13.3% of your unreported income at stake. There not going to ignore it.

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 explaination.

The correct response is to politely decline to answer and call a tax fraud attorney immediatly. Not tomorrow. Not after you "get your documents together." Not after you talk to your accountant. Immediatly. Every minute you spend talking to investigators 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 bank records. Pulling your brokerage statements. Getting your employer's compensation records from HR. Requesting cryptocurrency exchange transaction histories. Interviewing your accountant. Talking to your financial advisor. Seizing documents. Freezing accounts. Building there case. Your finances are being reconstructed while you try to figure out whats happening.

And in San Francisco, you may face parallel action from California FTB. Federal agents building there case while state investigators build theres. Two sets of subpoenas. Two sets of document requests. Two agencies reconstructing your income. By the time most people understand the severity, both investigations have gathered substantial evidence.

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 business lawyer. Someone who handles federal tax crimes and understands California's dual prosecution exposure. Someone who knows NDCA, California FTB, and the unique intersection of tech compensation with tax fraud. Someone whos been in the trenches. This is the one window were intervention can change everything.

Why You Need a San Francisco Tax Fraud Lawyer NOW

Your reading this because something happened. An agent visit. A letter from the IRS. A California FTB notice. 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. And in San Francisco, you might face TWO charging decisions - federal AND state. Everything changes when indictments come down. 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, Northern District of California prosecutors, and the unique dual prosecution exposure that California's 13.3% rate creates. We understand the exceptional threat your facing in San Francisco - where NDCA has decades of tech compensation expertise, where California FTB has independent prosecution authority, and where dual sovereignty means two trials, two potential convictions, and sentences that can run consecutivly. 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 court systems.

The consultation is free. The cost of waiting isnt. 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. Federal investigators and California FTB both. There pulling your W-2s. There analyzing your RSU vesting records. There tracing your cryptocurrency transactions. The question is wheather you'll have representation when they make there move - or wheather you'll be one more conviction in there statistics.

We've been doing this for years. We know how IRS-CI builds cases. We know how NDCA prosecutors think. We know how California FTB coordinates with federal investigators. 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 federal government AND California spend building there cases against you. Make the call. Protect yourself. Protect your family. Protect your career. Because once the indictments come down, protecting becomes much, much harder.