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New York City Tax Fraud Lawyer - Tax Evasion

Tax Fraud Attorney Explains New York Tax Evasion

Tax evasion as defined by 26 USC §7201 occurs when any person willfully attempts in any manner to evade or defeat any federal tax. This section reads, “Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”

To be convicted of tax evasion three elements must be proven:

  • That the defendant had a substantial income tax deficiency;
  • That the defendant made an affirmative attempt to evade or defeat the payment of the income tax; and
  • That the defendant acted willfully.

The government does not have to prove the exact amount owed or evaded. The only thing it must establish is that the defendant knew and understood that he or she willfully intended to evade or defeat the tax due. An affirmative act is any act performed to mislead the government with respect to the amount of taxes due or to conceal income to avoid the assessment or payment of a tax. Misrepresentations of income tax may take the form of underreporting income, inflating deductions, or hiding money and its interest altogether in offshore accounts.

If you have been charged with tax fraud, fraud lawyer Arthur Lebedin and tax evasion attorney Russ Kofman at Lebedin Kofman LLP can fight on your behalf. Our skilled team of tax attorneys is able to provide you with legal advice that may be able to help you protect your rights and freedom.

Contact us through our phone (646) 663-4430 or contact us online now and speak with one of our fraud attorneys in New York.

What Happens When a Person Fails to File a Tax Return?

Failure to file a tax return as defined by 26 USC §7203 occurs when any person required by law to pay a tax, make a return, or keep any records fails to pay the tax, make the return, or keep the records. This section read, “ Any person required under this title to pay any tax… who willfully fails to pay such tax… shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution.

To be convicted of failure to file a tax return, three elements must be proven:

  • That the defendant was required to file a tax return;
  • That the defendant did not file a tax return at or before the time required by law or regulation;
  • That the defendant’s failure to file was willful.

Filing a false tax return as defined by 26 USC §7206 occurs when anyone willfully makes any return, statement, or other documents that contain or is verified by a written declaration that it is made under the penalties of perjury, and the person does not actually believe such to be true and correct as to every material matter. A conviction of filing a false tax return will result in a felony and a fine of not more than $100,000 ($500,000 in the case of a corporation) or imprisonment of not more than 3 years, or both, together with the costs of prosecution.

To be convicted of filing a false tax return, five elements must be proven:

  • That the defendant made and subscribed and filed a tax return;
  • That the tax return contained a written declaration that it was made under the penalties of perjury;
  • That the return was false regarding a material matter;
  • That the defendant did not believe that the return was true and correct as to that material matter; and
  • That the defendant acted willfully.

Contact Lebedin Kofman LLP today at (646) 663-4430 to schedule a free consultation with one of our criminal defense attorney in New York.

What are the Laws Surrounding New York Tax Fraud?

Acts of cyberterrorism and identity theft, as well as wire fraud, are all dependent on certain legal terms. The same applies to tax crimes in NY. It is illegal in NY to commit tax fraud. Understanding and unpacking what constitutes tax fraud acts is an essential part of the work done by any New York City Tax Fraud Lawyer. The actions are included in the tax fraud act are:

  • Failure to file a NY tax return before April 15th each year
  • Failure to pay taxes to local, state, or federal governments
  • Incorrect or insufficient reporting of your income on a tax return
  • Filing a tax return with misleading or false material information
  • Failure to pay taxes on behalf of the federal or state government;
  • Evading taxes
  • You can’t sell taxable goods such as cigarettes or alcohol without paying the correct tax.

The State of New York takes tax fraud seriously. The New York Penal Law contains specific statutes that criminalize tax crime, including tax fraud. The amount of fraud against the NY government directly affects the specific charges and possible punishment.

  • The fifth-degree tax fraud statute is the most straightforward to understand and the least severe in NY. A person is guilty of tax fraud in the fifth degree (a misdemeanor) if he or she knowingly commits tax fraud acts. 
  • Tax fraud in the fourth grade is a class E felony that can lead to a maximum of four years imprisonment. The fourth degree of tax fraud is when you commit any tax fraud act with an intent to evade taxes or defraud the state government for more than $3,000.
  • Tax fraud in the third degree is a class D felony that can lead to a maximum of seven years imprisonment. Tax fraud in the third degree refers to any act of tax fraud with the intent of evading taxes or defrauding the state government exceeding $10,000
  • Tax fraud in the second level is a class C felony that can lead to a maximum of 15 years imprisonment. Tax fraud in the 2nd degree refers to any tax fraud act committed with the intent of evading taxes or defrauding the state government exceeding $50,000.
  • Tax fraud in its first degree is a class A felony that can lead to a maximum of 25 years imprisonment. Tax fraud in the 1st degree refers to any tax fraud act committed with the intent of evading taxes or defrauding the state government. It is defined as an attempt to evade taxes exceeding $1,000,000.

These are complex crimes, no matter how serious or significant the tax crime charges you face. 

The state law of New York applies to tax crimes and criminal tax acts that involve payment or nonpayment of state taxes. Federal tax crimes statutes apply to federal offenses in the same way as white-collar crime, computer fraud, and intellectual property offenses.

Tax evasion lawyer Russ Kofman and attorney Arthur Lebedin at Lebedin Kofman LLP work hard to give their clients the best legal advice possible. We understand how overwhelming it can be to face a tax-related offense. To speak with an experienced lawyer, contact us today. 

Seeking the Help of an Experienced New York City Tax Fraud Lawyers

A competent IRS tax lawyer is required if you find yourself in a similar situation to the one described above. Experience is the best substitute when searching for a tax fraud attorney to handle your case. It is important to research the background and experience of the potential attorney who you will trust to handle your case. Don’t hesitate to ask questions about similar cases. 

Lebedin Kofman LLP has a team of experienced tax attorneys who may be able to provide skilled legal advice on how you can get a more favorable outcome in your case. Contact us at (646) 663-4430 to schedule a consultation with one of our skilled tax fraud lawyers.

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