Tax Evasion Defense Attorneys in New York, New Jersey & Federal Court
Accused of Tax Evasion? Protect Your Finances, Reputation, and Freedom.
Tax evasion is one of the most serious tax-related criminal charges a person or business can face. Unlike civil tax disputes or audits, tax evasion requires proof that someone willfully attempted to avoid paying taxes owed. Both the IRS and state prosecutors in New York and New Jersey aggressively pursue these cases, which can result in felony convictions, massive fines, restitution orders, and years in prison.
What Is Tax Evasion?
Tax evasion generally involves willful attempts to avoid paying taxes, such as:
- Concealing or underreporting income
- Inflating deductions or expenses
- Using offshore accounts to hide funds
- Running cash-only businesses without proper reporting
- Falsifying records or destroying documents
- Misclassifying employees or payroll fraud
- Structuring transactions to evade reporting requirements
The key element is intent — the government must prove the taxpayer acted deliberately to avoid taxes, not that mistakes or negligence occurred.
Federal Tax Evasion Laws
Under 26 U.S.C. §7201, federal tax evasion is a felony punishable by:
- Up to 5 years in federal prison
- Fines up to $100,000 for individuals and $500,000 for corporations
- Restitution of taxes owed plus interest and penalties
- Possible forfeiture of assets connected to the crime
Because the IRS Criminal Investigation Division investigates these cases, defendants often face extensive financial audits, subpoenas, and coordination with other agencies such as the DOJ, FBI, and SEC.
Tax Evasion in New York
New York prosecutes tax evasion under Tax Law Article 1800, with penalties tied to the amount of tax liability avoided:
- Misdemeanor Offenses: Under $3,000 in unpaid tax; up to 1 year in jail.
- Felony Offenses: Over $3,000 in unpaid tax, ranging from:
- Class E Felony: Up to 4 years in prison
- Class D Felony: Up to 7 years in prison
- Class C Felony: Up to 15 years in prison
- Class B Felony: Up to 25 years in prison
New York also aggressively enforces sales tax evasion for businesses, which can result in both criminal charges and loss of business licenses.
Tax Evasion in New Jersey
New Jersey prosecutes tax evasion under N.J.S.A. §54 and related criminal statutes. Penalties depend on the conduct and amount of taxes evaded:
- Fourth-Degree Crime: Up to 18 months in prison and fines
- Third-Degree Crime: 3–5 years in prison and fines up to $15,000
- Second-Degree Crime: 5–10 years in prison and fines up to $150,000
New Jersey’s Division of Taxation often pursues both income tax evasion and sales/use tax evasion, especially in small businesses and cash-based industries.
Collateral Consequences of a Tax Evasion Conviction
- A permanent felony record for financial dishonesty
- Loss of professional licenses (law, accounting, finance, healthcare, etc.)
- Seizure or forfeiture of assets and property
- Immigration consequences for non-citizens
- Barriers to employment, housing, and government contracts
Defense Strategies in Tax Evasion Cases
- Lack of Intent: Demonstrating errors, negligence, or reliance on bad advice, rather than willful evasion
- Challenging IRS / State Findings: Exposing miscalculations, flawed audits, or improper procedures
- Suppression of Evidence: Contesting unlawfully obtained financial records or statements
- Negotiation: Pursuing settlements, payment plans, or reduced charges when possible
- Trial Defense: Building a case to show the absence of fraud beyond a reasonable doubt
Why Legal Representation Matters
Tax evasion cases are highly complex, involving forensic accounting, audits, and years of financial records. Federal and state prosecutors dedicate extensive resources to these prosecutions. Without skilled defense counsel, the risk of conviction — and devastating penalties — is significant.
An experienced tax evasion defense attorney in New York, New Jersey, and federal court can protect your rights, challenge the government’s case, and work toward minimizing penalties or avoiding conviction altogether.
