New York Tax Fraud and Tax Evasion Attorneys

New York based attorneys at Joseph Potashnik and Associates are highly experienced in defending clients at all stages of criminal tax matters pending with federal and state authorities such as the IRS and the Department of Taxation and Finance. We are routinely called upon to defend private and corporate clients accused of tax crimes in state and federal courts.

Tax evasion investigations take a long time, sometimes many months to develop, which allows our firm the time it needs to prepare rock-solid defense and mitigation strategies.

Yet our goal is to always prevent prosecution before it begins…. so the sooner we are contacted, the better the outcome can be.

We represent corporate and private clients in the IRS audits and criminal investigations as well as in federal court prosecutions throughout the country.

We can help you address the following issues:

  • Tax Evasion
  • Filing of False Tax Returns
  • Failure To File Tax Returns
  • IRS audits
  • IRS Criminal Investigations Division
  • Currency Transactions Reports
  • Cash Transactions Structuring
  • Undeclared Foreign Bank Accounts

If you are under the IRS audit or an investigation, or if you have been charged with a tax evasion crime, you need competent and aggressive legal representation by a firm with an established success record.

Criminal Tax Defense Attorneys For New York State cases

New York State Department of Taxation and Finance is aggressively pursuing criminal tax cases in New York. Because of the huge annual tax gap and budget deficit, New York has adopted new 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 and the method of evasion – it’s all classified tax fraud.  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 in New York:

  • 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 4th degree, an E Felony; between $10,000 and $50,000 is a Tax Fraud in the 3rd degree, a D Felony; $50,000 to $1M is a Tax Fraud in the 2nd degree, a C Felony, and evading over one million in taxes is Tax Fraud in the 1st 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.

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.

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

New York City tax evasion and tax fraud lawyers of our firms work with the best forensic accountants in the field and have a wealth of experience representing clients in criminal and pre-criminal tax matters. While our goal is to shut down any investigation at 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 defense attorneys of Joseph Potashnik and Associates PC  immediately to set up a confidential consultation.