Being accused of tax evasion in New York is a serious situation that can result in felony charges, significant fines, restitution, and even prison time. Unlike simple tax filing errors, tax evasion involves intentionally attempting to avoid paying taxes owed to the state or the federal government. If you are under investigation or have already been charged, understanding the legal definitions, potential penalties, and your defense options is crucial. Continue reading and consult with a knowledgeable Rockland County criminal defense attorney to schedule your free consultation today.
What is Tax Evasion?
Tax evasion is defined in New York law as the willful attempt to evade or defeat taxes imposed under the state’s Tax Law. The statutes addressing this are found in Article 37 of the New York Tax Law, covering both civil and criminal penalties for various forms of tax fraud and evasion.
For example, Tax Law § 1801 establishes the crime of attempting to evade or defeat taxes. This includes actions like deliberately failing to file a return, preparing and filing a false return, or concealing income or assets. An important legal element is intent; the prosecution must prove the individual knowingly and intentionally acted to avoid paying the taxes legally due to the state. This elevates the offense from a civil matter to a serious criminal charge. Making an honest mistake when filing or paying can result in civil penalties, but intentionally attempting to commit fraud is considered criminal tax evasion.
What Are the Penalties for Tax Evasion in NY?
The severity of penalties for tax evasion in New York depends on the amount of tax that was attempted to be evaded and the specific criminal charge filed. Tax evasion can be prosecuted as a misdemeanor or a felony under New York’s criminal tax fraud statutes.
Criminal penalties may include:
- Fifth-degree tax fraud (Class A misdemeanor): Up to 1 year in jail
- Fourth-degree tax fraud (Class E felony): Up to 4 years in prison
- Third-degree tax fraud (Class D felony): Up to 7 years in prison
- Second-degree tax fraud (Class C felony): Up to 15 years in prison
- First-degree tax fraud (Class B felony): Up to 25 years in prison
In addition to incarceration, courts can impose substantial fines, often thousands or tens of thousands of dollars, along with mandatory restitution for all unpaid taxes, interest, and fraud penalties.
Besides criminal consequences, New York imposes heavy civil fraud penalties. The severity of both criminal and civil penalties emphasizes the importance of skilled legal representation.
Reach out to an experienced attorney today for more information and skilled legal advice.
