Criminal Tax Fraud in the Fourth Degree, pursuant to New York Tax Law 1803, is the first felony Criminal Tax Fraud offense. In fact, Criminal Tax Fraud in the Fourth Degree is an "E" felony punishable by up to four years in prison for a first time offender. While the law does not require a mandatory incarceration for a first time offender, you will face a mandatory minimum of one and one half to three years in prison if you are a predicate felon. While the potential for incarceration can be fully examined by a New York criminal lawyer, an issue you should address early on is the collateral consequences beyond imprisonment. The potential harm to your future, regardless of your criminal history, is directly relevant to any Criminal Tax Fraud arrest or indictment. Even without incarceration, a mere hint of Criminal Tax Fraud, Grand Larceny or Offering a False Instrument for Filing can end your promising career or terminate opportunities that took years, and tens of thousands of dollars, worth of schooling.
You are guilty of Criminal Tax Fraud in the Fourth Degree if you commit a “tax fraud act” with the intent to evade certain taxes. Additionally, you must defraud the state during a time frame not exceeding one year out of more than $3,000, but not greater than $10,000, less than the tax liability that is due. Addressing the latter element of this crime, if you, for example, underpay your taxes by $4,250 or receive an additional $4,250 refund more than what was rightfully owed to you, the financial aspect of this offense is satisfied. Remember, prosecutors would still need to establish your intent to defraud. Mere underpayment or receipt of an excessive refund is not enough.
Beyond the intent to defraud as well as the theft from New York State in an amount that is more than $3,000 and equal to or less than $10,000, you must commit a “tax fraud act.” Some examples of a “tax fraud act” are the failure to remit taxes, failure to collect sales taxes, failure to file a tax return or filing of a return where there is an intentional and material misrepresentation.
NY Tax Law 1803: Other Crimes & IssuesBriefly mentioned above, Criminal Tax Fraud is often associated with other crimes. For example, your alleged theft of $6,500 in tax monies used to purchase a Breitling or Rolex could potential be rolled into crimes more significant than the actual Criminal Tax Fraud. If you steal or possess stolen property (the money from New York State) that is valued in excess of $3,000, but no more than $50,000, you would face a “D” felony of Grand Larceny in the Third Degree (NY PL 155.35) punishable by up to seven years in state prison. Obviously, these crimes are more significant than NY Tax Law 1803. Other crimes may include:
Beyond the crimes listed above, there is little doubt that a conviction for Criminal Tax Fraud is a crime of “moral turpitude” and one that will at minimum delay the renewal of a visa or green card and at worst result in your inability to renew the same. For those with professional licenses in the financial or legal sectors, a conviction can result in your inability to continue to work in your given profession. Even if you do not have a license, a Criminal Tax Fraud conviction will not be something so easy to explain away to a future employer. Make no mistake. How you handle the allegations, arrest or indictment against you today will have a tremendous impact on where you will be weeks, months and years after your case is ultimately resolved.
To learn more about Criminal Tax Fraud in New York, please review the main Criminal Tax Fraud section on our website. Additional information on the crimes listed above is also available through their respective links on this website and the CrottySaland.Com website. Beyond these websites, the NewYorkCriminalLawyerBlog.Com and the NewYorkTheftAndLarcenyLawyersBlog.Com contain analysis of statutes, legal decisions and newsworthy cases directly relevant to New York white collar crimes.
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