Criminal Tax Fraud in the Second Degree: NY Tax Law 1805

Criminal Tax Fraud in the Second Degree is one of the more common New York Tax crimes that result in incarceration for those indicted and arrested. This “C” felony, punishably by up to fifteen years in prison for an individual with absolutely no criminal history, involves tax crimes where the value of the monies withheld or received is greater than $50,000 and equal to or less than $1,000,000. For obvious reasons, allegations for larcenies from the State of New York are more frequent than, for example, Criminal Tax Fraud in the hundreds or thousands of dollars. Not only is the reward greater for New York to “claw back” her money, but the risk is equally great for those targeted in investigations for violating New York Tax Law 1805.

New York criminal lawyers representing clients accused of Criminal Tax Fraud in the Second Degree have their work cut out for them. That by no means is to say that he or she cannot rely on their skill, experience and knowledge of the law to avoid, for example, a sentence of prison or even a felony conviction for violating NY Tax Law 1805. But before even having that conversation with your attorney, it is critical for you, as the accused, to understand the crimes you may face in an indictment or at trial as well as the collateral consequences to any type of theft or larceny arrest in New York.

Criminal Tax Fraud in the Second Degree mimics, in part, Grand Larceny in the Second Degree (NY PL 155.40) in that the theft or value of the tax fraud, as mentioned above, must be greater than $50,000, but no more than $1,000,000. Beyond this, however, you are guilty of Criminal Tax Fraud in the Second Degree if you commit a “tax fraud act.” An example of a “tax fraud act” would be withholding sales tax from the state or supplying materially inaccurate information on a tax return. These acts in and of themselves are not criminal, however. When committing this “tax fraud act” that resulted in your underreporting or obtaining a larger return than you were entitled to, you must have done so intentionally and with the intent to defraud.

An easy hypothetical or example of a NY Tax Law 1805 violation would occur where you intentionally failed to collect sales tax monies on items you sold at your store so you could defraud the state of New York. If you did not collect sales taxes then it may be easier for you to move the merchandise. If the value of the sales tax that was not collected or remitted was $100,000, for example, then you may have violated Second Degree Criminal Tax Fraud. Even clearer, if you materially altered your tax return and underpaid this same amount, you would also be guilty of this offense.

• Grand Larceny: New York Penal Law Article 155
• Criminal Possession of Stolen Property: New York Penal Law Article 165
• Offering a False Instrument for Filing: New York Penal Law Article 175
• Falsifying Business Records: New York Penal Law Article 175
• Forgery: New York Penal Law Article 170

The realities of an arrest, indictment or conviction for any white collar crime are horrendous. Beyond imprisonment and embarrassment, there are consequences to those who are accused of a New York theft and larceny crime including Criminal Tax Fraud. Will your employer suspend you from work pending the outcome of the law enforcement inquiry? Will a professional organization, such as the Bar for lawyers or FINRA for finance professionals, seek to depose you or have an on the record interview? If you are in the midst of an applying for or accepting a job what will “pop” on a background check? Even assuming an employer or professional organization does not become aware of the arrest now, what will happen in two, four or six years from now if and when they do find out. For that matter, will you even have a job?

• New York Criminal Tax Fraud Information Page
• Theft Convictions: Collateral Consequences
• Theft Crimes Sentencing Guidelines
• Defenses to Theft & Larceny

While the above questions may very well be addressed by a criminal attorney who is versed in white collar crimes, your questions and concerns will never be answered unless you take the first step in consulting with a New York criminal lawyer. The unfortunate situation that you face – a felony conviction, incarceration and loss of your livelihood – is not merely going to disappear. Educate yourself on the law, identify potential defenses and begin the process of protecting your liberty and preserving your future.

For further reading on New York Criminal Tax Fraud and other theft crimes, review the main section for this offense as well as the other areas of this website. Additional information is available on CrottySaland.Com’s White Collar Crime section, NewYorkCriminalLawyerBlog.Com and NewYorkTheftAndLarcenyLawyersBlog.Com. The latter two blogs not only contain analysis of criminal statutes and legal decisions, but insight on recent criminal cases pending in the New York City area.

Call the Former Manhattan Assistant District Attorneys & Tax Crime Defense Attorneys at (212) 312-7129 or contact us online today.