What are the penalties for tax evasion in New York?

In New York, if you are accused of intentionally misleading the IRS (Internal Revenue Service) to avoid paying taxes that have been assessed against you or providing the IRS with an underpayment of tax liabilities due, you will be charged with tax evasion. Those guilty of tax evasion will be subject to criminal charges and substantial penalties. That said, if you are currently being audited with suspicion of fraud or charged with this offense, it is in your best interest to retain the legal services of a skilled Rockland County Criminal Defense Attorney who can fight on your behalf and maximize your chances of preventing harsh penalties. Keep reading to learn about the potential penalties for tax evasion in New York. 

What is tax evasion in New York?

Firstly, tax evasion is the willful attempt to evade paying your mandatory contribution to the government for their general services or the underpayment of actual tax liabilities due. Essentially, you are guilty of tax evasion when you deliberately lie on your tax return to reduce the amount of money you owe. The IRS determines when an individual or entity is guilty of this offense. It is critical to note that you can be prosecuted by the state or federal government. However, they will be burdened with proving that you intentionally avoided paying your taxes. Some of the most common forms of tax evasion include but are not limited to the following:

  • Filing a false tax return.
  • Underreporting your annual income.
  • Exaggerating your tax deductions.
  • Making up dependents on your return.
  • Transferring assets to others to avoid paying your tax liabilities.
  • Hiding income or assets to reduce tax liabilities due.
  • Claiming credits that you are not legally permitted to claim.
  • Holding property in someone else’s name.
  • Having a double set of books for your business.

What are the potential penalties?

Tax evasion can refer to several actions in which a taxpayer evades the payment of a true tax liability. Tax evasion is a serious criminal offense that can result in severe consequences. Generally, the severity of your penalties will vary depending on the specific circumstances of the crime. For instance, a failure to pay a small tax liability will result in lesser penalties than if you fail to pay a large tax liability.

If the state or the federal government is prosecuting you, you could be subject to fines of up to $250,000 as a private individual and up to $500,000 for corporations. The average jail time for this criminal offense is around three to five years. However, if the tax liability due was over a million dollars, you could be looking at a 25-year prison sentence.

If you have been charged with tax evasion, contact a talented Rockland County criminal defense attorney from the Law Office of Carl Spector as soon as possible. We are prepared to vigorously defend you to maximize your chances of avoiding harsh penalties.