New York Tax Fraud Cases

New York City Criminal lawyers of Norman Spencer Law Group PC represent individuals and corporate clients who face criminal investigations and charges for violations of New York State tax code. We built a successful track record of defending tax fraud cases – from easy to very complex.

Because of the huge annual tax gap and budget deficit, New York has adopted it criminal tax laws in April 2009. The new law significantly increases criminal penalties for fraud and tax evasion. Unlike the old law, the new code does not make any difference between the type of tax evaded or the method of evasion. As a matter of fact, New York Tax Law §1801 recognizes tax fraud as a separate crime, divided into 5 degrees, the lowest being a class A Misdemeanor and the highest a class B Felony.

Under the revised New York Tax Law §1801, there are several ways one may commit tax fraud:

• Willful Failure to File a Return or Other Required Document
• Willfully and Knowingly Making or Filing a False Return
• Willfully and Knowingly Making or Filing Report or Supplying False Information
• Willfully Engaging in a Scheme to Defraud the State in Connection With Any Matter Under the Tax Law
• Willfully Failing to Remit Taxes Collected on Behalf of the State
• Willfully Failing to Collect a Sales, Excise, or Withholding Tax
• Willfully and With Intent to Evade Any Tax, Failing to Pay a Tax Due
• Issuing False Exemption Certificates.

Tax fraud in New York where the amount of unpaid tax involved is between $3,000 and $10,000 is now Tax Fraud in the 4^th degree, an E Felony; between $10,000 and $50,000 is a Tax Fraud in the 3^rd degree, a D Felony; $50,000 to $1M is a Tax Fraud in the 2^nd degree, a C Felony, and evading over one million in taxes is Tax Fraud in the 1^st degree, a B felony.

Defendants who commit tax fraud in New York but do not meet the monetary threshold are still prosecuted under either larceny provisions or under the “Offering a False Instrument for Filing” provision.

What Are The Penalties for Tax Fraud in New York

Individuals convicted of tax fraud in New York can face significant legal consequences such as prison time and fines. The new law also increases monetary penalties for tax fraud felonies, which is “the greater of double the amount of the underpaid tax liability resulting from the commission of the crime” or either $50,000 for individuals and $250,000 for corporate defendants. Defendants who are not US citizens may face deportation from the United States. Those holding professional licenses may face discipline from their licensing agencies.

If you discover that you are the target of the New York State Department of Taxation and Finance investigation, you may be in risk of criminal prosecution. You must talk to a competent New York tax fraud lawyer before discussion anything at all regarding the case with anyone else, let alone the investigators.

New York City tax evasion and tax fraud attorneys of our firms work with the best forensic accountants in the field and have wealth of experience representing clients in criminal and pre-criminal tax matters. While our goal is to shut down any investigation in the beginning of the process, realistically, that could not always be the case. We will work to minimize and control potential criminal liability and achieve the optimal outcome.

Here are some of our recent tax fraud cases:

• Represented a Queens business owner charged with sales tax evasion in the amount of several million dollars. We negotiated a favorable plea deal with charges reduced to a misdemeanor and the client was sentenced to probation.

• Represented a construction company owner investigated for tax evasion in the amount of $550,000. No charges were filed and the case was resolved administratively.

• Represented an individual investigated for failing to file tax returns for over 5 years. No criminal charges were filed.

If you are facing New York tax problems that you believe may be criminal, call the New York City  tax fraud attorneys of Norman Spencer Law Group PC immediately to set up a confidential consultation.