The first felony level of criminal tax fraud, as defined by New York Tax Law 1803, is criminal tax fraud in the fourth degree. In actuality, fourth-degree criminal tax fraud is a class “E” felony that carries a maximum four-year jail sentence for first-time offenders. The minimum sentence for a predicate felon is one and a half to three years in jail, even though the statute does not mandate prison time for first-time offenders. A problem you should consider early on is the collateral implications outside of imprisonment, even if a New York criminal lawyer can thoroughly investigate the possibility of incarceration.
Every arrest or indictment for criminal tax fraud is directly related to the possible harm to your future, regardless of your prior background. Even if you are not imprisoned, even the slightest indication of grand theft, criminal tax fraud, or offering a false instrument for filing can put an end to your promising profession or chances that required years of study and tens of thousands of dollars in tuition.
Overview Of Criminal Tax Fraud in the Fourth Degree: NY Tax Law 1803
If you perform a “tax fraud act” with the purpose of evading certain taxes, you are guilty of criminal tax fraud in the fourth degree. In addition, you must defraud the state of more than $3,000 but no more than $10,000 less than the owed tax liability over a period of time not to exceed one year. With relation to the second element of this crime, the financial component of this violation is satisfied, for instance, if you underpay your taxes by $4,250 or receive a return of an excess of $4,250 than what was owed to you. Keep in mind that the intent to defraud would still need to be proven by the prosecution. It is insufficient to just receive an excessive refund or an underpayment.
You must perform a “tax fraud act” in addition to having the intent to defraud and steal money from New York State worth more than $3,000 but not more than $10,000. Failure to pay taxes, failure to collect sales taxes, failure to file a tax return, and filing a return with a deliberate and material misrepresentation are a few instances of “tax fraud acts.”
Criminal tax fraud frequently occurs in conjunction with other crimes. The alleged theft of $6,500 in tax funds used to buy a Breitling or Rolex, for instance, might potentially be combined with other offenses that are more serious than the actual Criminal Tax Fraud. You would be charged with a “D” felony of Grand Larceny in the Third Degree (NY PL 155.35), punishable by up to seven years in state prison, if you steal or possess stolen property (the money from New York State) valued at more than $3,000 but no more than $50,000.
- CRIMINAL TAX FRAUD IN THE FIRST DEGREE: NY TAX LAW 1806
- CRIMINAL TAX FRAUD IN THE SECOND DEGREE: NY TAX LAW 1805
- CRIMINAL TAX FRAUD IN THE THIRD DEGREE: NY TAX LAW 1804
- CRIMINAL TAX FRAUD IN NEW YORK
Defenses For Criminal Tax Fraud in the Fourth Degree Cases In New York
In New York, criminal tax fraud in the fourth degree is a serious offense that involves intentionally filing false tax returns, failing to file a tax return, or evading taxes in an amount exceeding $1,000. If you are facing charges for criminal tax fraud in the fourth degree, you need to understand the potential defenses to this crime to protect your rights and freedom.
One common defense to criminal tax fraud in fourth-degree cases in New York is lack of knowledge. To prove that you committed this crime, the prosecution must show that you knew or had reason to know that your tax return was false or incomplete. If you can demonstrate that you were unaware of the false information on your tax return, you may be able to have your charges dismissed.
Another defense to criminal tax fraud in the fourth degree is good faith. If you can demonstrate that you acted in good faith and believed that your tax return was accurate, even if it turned out to be false, this defense could potentially lead to a reduction in your charges or a not-guilty verdict.
A third defense to criminal tax fraud in the fourth degree is reliance on a tax professional. If you hired a tax professional to prepare your tax return and relied on their expertise and advice, you may be able to argue that you were not aware of any false information and therefore should not be held responsible for the mistake.
Finally, a fourth defense to criminal tax fraud in the fourth degree is a mistake of fact. If you can demonstrate that you made an honest mistake on your tax return, such as misinterpreting the tax laws or misunderstanding the information provided by your employer, you may be able to argue that you did not intend to commit tax fraud.