Tax fraud charges in New York City can have serious, far-reaching consequences. Whether the allegations involve underreporting income, claiming false deductions, or failing to file returns altogether, these cases can trigger aggressive investigations and severe penalties. Navigating the complex world of tax law requires not only an understanding of the relevant statutes and procedures but also a strategic defense crafted by skilled legal professionals.
At Romano Law, our experienced tax fraud defense attorneys are committed to protecting your rights and guiding you through this challenging process. With years of experience handling both state and federal tax fraud cases, we understand how to approach these cases with precision and diligence.
Common Tax Fraud Charges in NYC
Tax fraud encompasses a broad range of illegal activities designed to evade paying taxes. In New York City, common tax fraud charges include:
- Filing False Returns: Submitting tax returns with incorrect or misleading information, such as underreporting income, overstating deductions, or failing to disclose assets.
- Failure to File Returns: Deliberately not filing tax returns, which can constitute fraud if done with intent to evade taxes.
- Failure to Collect or Pay Withholding Taxes: Business owners or employers may be charged if they fail to remit withheld employee taxes to tax authorities.
- Sales Tax Evasion: Involving businesses that underreport taxable sales or fail to remit collected sales tax.
Each of these charges carries specific legal elements and must be proven beyond a reasonable doubt. Defending against these accusations requires a nuanced understanding of both the financial evidence and the legal standards involved.
Tax Fraud Penalties
Filing False Returns
In New York, filing a false return can result in both civil and criminal penalties. Criminal charges can include felony tax fraud with penalties of up to 7 years in prison and substantial fines. Additionally, the Department of Taxation and Finance may impose civil penalties of up to double the underpaid tax, plus interest.
Failure to File Returns
This charge can lead to misdemeanor or felony prosecution, depending on the amount of tax evaded and intent. Penalties may include up to 4 years in prison and significant financial penalties, including civil assessments of the unpaid tax and fines.
Failure to Collect or Pay Withholding Taxes
Employers who fail to remit taxes withheld from employees may face severe consequences, including criminal charges, fines, and personal liability for the unpaid taxes. Convictions can result in prison terms of up to 7 years and civil penalties equal to the unpaid tax.
Sales Tax Evasion
Sales tax fraud is aggressively prosecuted in New York. Business owners found guilty may face criminal charges carrying up to 15 years in prison for large-scale evasion, plus civil penalties of up to triple the amount of tax owed.
What to Expect During a Tax Fraud Investigation
A tax fraud investigation typically begins with a review of your bank statements, tax returns, financial records, and other relevant documents. You may receive a notice of audit or investigation from the New York State Department of Taxation and Finance or federal authorities. During this process, investigators will scrutinize discrepancies, request additional documentation, and interview witnesses or associates.
The investigation phase is critical. Even inadvertent errors can trigger suspicion, and what may start as a civil audit can quickly escalate into a criminal investigation. Therefore, it’s essential to retain experienced legal counsel immediately upon receiving notice of an investigation.
Our attorneys at Romano Law know how to navigate these investigations effectively. We work to protect your rights, limit your exposure, and negotiate with tax authorities where appropriate. Our team meticulously reviews financial records, challenges the government’s evidence, and, if necessary, prepares for trial. In many cases, early intervention can result in reduced penalties or even the dismissal of criminal charges.
Contact Our Tax Fraud Defense Attorneys Today
If you are under investigation or facing tax fraud charges in New York City, don’t wait to seek legal help. The sooner you involve an experienced defense attorney, the better your chances of mitigating or avoiding severe penalties.
At Romano Law, our NYC tax fraud defense attorneys are prepared to fight for your rights. Contact us today to schedule a confidential consultation and discuss how we can help protect your future.
