What are the penalties for tax evasion in New York?

Understanding your tax liabilities can be complex. Sometimes, mistakes can be made when filing taxes or following misguided advice from a financial advisor. Unfortunately, these errors can lead to accusations of tax evasion. Tax evasion is a serious crime in New York that carries harsh penalties. If you failed to pay your state or federal taxes, it is in your immediate interest to contact a determined Astoria Criminal Defense Lawyer who can defend your rights and interests. Please continue reading to learn about the potential tax evasion penalties in New York. 

What is tax evasion in New York?

In New York, you are guilty of tax evasion if you intentionally avoid paying your taxes or provide the government with an underpayment of actual tax liabilities due. Essentially, most U.S. citizens who work in the United States are subject to paying federal income tax and filing a tax return if they make more than a certain amount for the year. This applies not only to individuals but also to private entities like businesses. The IRS typically determines whether the crime of tax evasion has been committed. If it has been determined that you have deliberately evaded paying your taxes or have provided an underpayment of your actual tax liabilities that are owed, the state or federal government must prove the avoidance of taxes was willful on your part to subject you to criminal charges.

What are the potential penalties?

Tax evasion is a serious crime in New York as it involves deliberately deceiving the government by avoiding satisfying your tax liabilities. Therefore, tax evasion carries significant penalties, such as hefty fines and lengthy prison sentences. However, the severity of your penalties will vary depending on whether you are being prosecuted by the state or federal government and the amount you failed to pay to fulfill your tax obligations. Generally, tax evasion charges are classified between a class A misdemeanor and a class B felony:

• If there is no value attached, meaning it is the lowest level fifth-degree offense, you will be charged with a class A misdemeanor which is punishable by up to one year in jail.
• Fourth-degree charges are for an amount over $3,000, which is classified as a class E felony.
• Third-degree charges are for an amount over $10,000, which is classified as a class D felony.
• Second-degree charges are for an amount over $50,000, which is classified as a class C felony.
• First Degree-charges, the highest level offense, is for over $1,000,000. It will be classified as a class B felony punishable by up to 25 years in jail.

Depending on the specific circumstances of your crime, you could be looking at hundreds of thousands of dollars in fines and decades in prison. With these significant penalties lingering over your head, it is in your best interests to retain the legal services of a seasoned attorney from the legal team at Vasiliou Law today. Our firm is committed to helping our clients fight for the best possible outcome.