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Most Common Tax Crimes in New Jersey

January 10, 2023

Tax season may seem like it’s a long time away. As the holiday season flies by, the IRS due date will be here before you know it. Now is a good time to review some of the most common tax crimes committed in New Jersey. While most tax crimes are intentional, crimes may also include unintentional mistakes.

Common Tax Crimes in New Jersey

Here are some of the most common tax crimes committed in New Jersey:

  1. Tax Evasion: Tax evasion includes intentionally not paying, or underpaying your taxes.
  2. Not Filing Taxes: Failing to file your taxes is also illegal. That is unless you don’t have an income to report.
  3. Avoiding Taxes: Many people may avoid doing their taxes, either because they aren’t comfortable doing them or because they don’t want to owe. Avoiding taxes is also illegal.
  4. Failure to Keep Records: Businesses especially are required to keep records of all business and tax information. Not doing so can lead to fines.
  5. Falsifying a Tax Return: Purposefully falsifying a tax return is also illegal and can lead to criminal charges and expensive fines.

Each of these crimes makes up an area of the legal industry that is referred to as tax fraud. One of the hardest things about filing taxes is that the laws change each year. One year, you may not be required to file taxes if you’re income is over a certain limit. The next year, not reporting that same income may be illegal.

The Legal Definition of Tax Fraud

The government considers tax fraud to be an act of intentional deception in an attempt to benefit personally. It may also include actions of misrepresentation. In order to be considered tax fraud, the law requires that the defendant know that what they’re submitting or claiming is false. Tax fraud must also cause detriment to another party, which is commonly the IRS.

This means that tax fraud is not the same as tax avoidance. Tax fraud is the action of purposely not filing taxes so that you don’t have to pay taxes. This is different than putting off your taxes because you don’t know how to file them properly. It is important to know that your intentions could be questioned, meaning you could be charged with tax fraud even if that wasn’t the case.

Potential Consequences for Tax Fraud

The specific and potential consequences of tax fraud depend on the type of fraud, and the details of the fraud. Tax fraud is considered a felony, which means it leads to severe consequences. You could receive up to five years in prison and legal fines of up to $100,000 if convicted.

Tax avoidance may not be a felony, but it also has consequences. If you fail to file a tax return in a year in which you’re legally required to, you may be charged with a misdemeanor. This could lead to up to one year in prison and legal fines of up to $25,000. If the IRS proves that you intentionally didn’t file, they could increase your charges to a felony. If you receive an audit, it may be worth it to consider talking with a tax lawyer. An audit doesn’t mean that you’ll be charged or convicted, but it does mean that your tax returns raised some red flags.

Contact an Experienced Mount Laurel Criminal Defense Lawyer About Your Tax Fraud Charges in New Jersey

Were you arrested or charged with tax fraud in New Jersey? The consequences of a conviction could be severe, leaving you with a permanent criminal record and possibly even sending you to jail. That is why you need to speak with a qualified criminal defense attorney as soon as possible about your case. The Law Offices of Michele Finizio have successfully represented clients charged with tax fraud in Mount Laurel, Willingboro, Pemberton, Camden, and throughout New Jersey. Call (609) 230-0374 or fill out the online contact form to schedule a consultation with a member of our legal team. We have an office conveniently located at 9 E. Main St, Moorestown, NJ 08057, as well as an office located in Cherry Hill, NJ.

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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