Tax Fraud Defense Attorneys in New York, New Jersey & Federal Court
Accused of Tax Fraud? Protect Your Rights, Finances, and Freedom.
Tax fraud allegations go beyond ordinary tax mistakes or disputes — they involve claims of deliberate deception in order to reduce tax liability or gain unlawful financial benefit. Both the IRS and state prosecutors in New York and New Jersey aggressively pursue tax fraud cases, which can result in felony convictions, massive fines, restitution, forfeiture of assets, and years in prison.
Because intent is the key factor in tax fraud, having experienced legal counsel is essential to distinguish between errors, negligence, and alleged fraud.
What Is Tax Fraud?
Tax fraud typically involves willful misrepresentation of financial information. Examples include:
- Filing false or fraudulent tax returns
- Underreporting income or overstating deductions
- Claiming exemptions or credits not entitled to
- Concealing assets through offshore accounts or shell corporations
- Using false Social Security numbers or taxpayer IDs
- Submitting false payroll or sales tax records
- Falsifying business expenses or deductions
Federal Tax Fraud Laws
Federal tax fraud prosecutions are handled by the IRS Criminal Investigation Division and the U.S. Department of Justice. Key statutes include:
- 26 U.S.C. §7201 – Tax Evasion: Up to 5 years in prison and $100,000 in fines ($500,000 for corporations).
- 26 U.S.C. §7206 – Filing False Returns: Up to 3 years in prison and $250,000 in fines.
- 26 U.S.C. §7207 – Fraudulent Statements: Up to 1 year in prison and $10,000 in fines.
- 18 U.S.C. §371 – Conspiracy to Defraud the U.S.: Up to 5 years in prison.
Federal cases often involve wire fraud, mail fraud, or money laundering charges stacked on top of tax fraud, which can drastically increase exposure.
Tax Fraud in New York
New York prosecutes tax fraud under Tax Law Article 1800. Penalties are based on the amount of unpaid or evaded taxes:
- Criminal Tax Fraud in the Fifth Degree (Class A Misdemeanor): Up to 1 year in jail.
- Criminal Tax Fraud in the Fourth Degree (Class E Felony): More than $3,000; up to 4 years in prison.
- Third Degree (Class D Felony): More than $10,000; up to 7 years.
- Second Degree (Class C Felony): More than $50,000; up to 15 years.
- First Degree (Class B Felony): More than $1 million; up to 25 years.
New York aggressively pursues sales tax fraud, false returns, and corporate tax schemes, often imposing restitution in addition to criminal penalties.
Tax Fraud in New Jersey
New Jersey prosecutes tax fraud under N.J.S.A. §54 and §2C:21-4.1 (falsifying records). Penalties include:
- 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 works closely with prosecutors and the IRS, so civil audits can escalate into criminal charges quickly.
Collateral Consequences of a Tax Fraud Conviction
- Permanent criminal record for fraud and dishonesty
- Restitution orders and loss of assets through forfeiture
- Loss of professional licenses (law, finance, healthcare, etc.)
- Immigration consequences for non-citizens
- Damage to personal and professional reputation
Defense Strategies in Tax Fraud Cases
- Lack of Intent: Proving mistakes or negligence, not deliberate fraud
- Challenging IRS or State Evidence: Highlighting errors in audits, calculations, or assumptions
- Suppression of Evidence: Contesting unlawfully obtained financial records or statements
- Reliance on Professionals: Demonstrating reliance on accountants or tax preparers for filings
- Negotiation: Securing civil settlements, restitution, or reduced charges in lieu of prison
Why Legal Representation Matters
Tax fraud prosecutions combine criminal law, tax law, and financial forensics. The IRS, New York, and New Jersey dedicate enormous resources to these cases, often using expert witnesses, digital forensics, and years of financial records. Without skilled representation, the risk of conviction and devastating penalties is extremely high.
An experienced tax fraud defense attorney in New York, New Jersey, and federal court can challenge the government’s case, negotiate settlements, and fight to protect your freedom, finances, and future.
