Tax Crime Defense Attorneys in New York, New Jersey & Federal Court
Accused of Tax Fraud or Tax Evasion? Protect Your Finances, Career, and Freedom.
Tax crime allegations are some of the most serious white-collar charges a person or business can face. Both federal authorities and state prosecutors in New York and New Jersey aggressively pursue cases involving tax fraud, tax evasion, and related offenses. A conviction can bring crushing financial penalties, restitution orders, loss of professional licenses, and years in prison. Even civil tax problems can escalate into criminal investigations, making early legal intervention essential.
Common Types of Tax Crimes
- Tax Evasion: Concealing income or assets to avoid taxes.
- Filing False Returns: Misreporting income, deductions, or credits.
- Failure to File or Pay: Not filing required returns or failing to remit taxes owed.
- Sales Tax Fraud: Underreporting sales, falsifying receipts, or skimming cash.
- Payroll Tax Violations: Failing to turn over employee withholdings to the IRS or state.
- Corporate / Business Tax Fraud: Offshore accounts, shell company misuse, or fraudulent deductions.
Federal Tax Crimes
Federal tax offenses are prosecuted by the IRS Criminal Investigation Division and the U.S. Department of Justice under the Internal Revenue Code:
- Tax Evasion (26 U.S.C. §7201): Up to 5 years in prison and fines of $100,000 for individuals ($500,000 for corporations).
- Filing False Returns (26 U.S.C. §7206): Up to 3 years in prison and fines up to $250,000.
- Failure to File / Failure to Pay (26 U.S.C. §7203): Misdemeanor, up to 1 year in prison per count.
- Conspiracy to Defraud the United States (18 U.S.C. §371): Up to 5 years in prison.
Federal prosecutions often involve complex evidence, including audits, wire transfers, financial records, and business transactions spanning years.
New York Tax Crimes
New York prosecutes tax-related offenses under Tax Law Article 1800 and the Penal Law. Charges are based largely on the amount of unpaid or evaded tax:
- Misdemeanor Tax Fraud: Under $3,000; punishable by fines and up to 1 year in jail.
- Felony Tax Fraud: Over $3,000; ranges from Class E felonies (up to 4 years) to Class B felonies (up to 25 years).
- Sales Tax Evasion & False Filings: Businesses that underreport or falsify sales can face severe financial penalties, restitution, and license suspension.
New Jersey Tax Crimes
New Jersey criminalizes tax violations under N.J.S.A. §54 and §2C:21-4.1 (falsifying or misrepresenting records). Penalties include:
- Fourth-Degree Crimes: Up to 18 months in prison and fines.
- Third-Degree Crimes: 3–5 years in prison and fines up to $15,000.
- Second-Degree Crimes: 5–10 years in prison and fines up to $150,000, often tied to large-scale fraud or deliberate evasion.
The New Jersey Division of Taxation coordinates closely with prosecutors and federal agencies, making even small-scale tax issues risky if ignored.
Collateral Consequences of a Tax Conviction
- A permanent criminal record for financial dishonesty
- Heavy restitution orders and civil penalties on top of fines
- Loss of professional licenses (law, accounting, healthcare, finance)
- Immigration consequences for non-citizens
- Damage to business credibility and professional reputation
Defense Strategies
Possible approaches to defending tax charges may include:
- Demonstrating lack of criminal intent (errors vs. fraud)
- Challenging IRS, state, or auditor findings
- Exposing bookkeeping mistakes, miscalculations, or reliance on bad advice
- Suppressing unlawfully obtained financial records or statements
- Negotiating restitution or repayment to avoid criminal prosecution
Why Legal Representation Matters
Tax crimes sit at the intersection of criminal law, financial law, and administrative regulation. Federal prosecutors and state tax agencies dedicate significant resources to these cases, and penalties are designed to be severe. A skilled tax crime defense attorney — experienced with federal, New York, and New Jersey tax law — can protect your rights, challenge the government’s evidence, and pursue strategies to reduce penalties or avoid conviction altogether.
