New York Tax Law § 1804 establishes criminal tax fraud in the third degree, which is a more serious offense than fourth-degree criminal tax fraud. This crime is committed when a person intentionally and willfully provides false information on their tax returns or other tax-related documents, and the amount of tax liability involved is more than $3,000. The goal of this law is to deter tax fraud and ensure that everyone pays their fair share of taxes.
Under New York Tax Law § 1804, a person commits criminal tax fraud in the third degree if they intentionally and willfully provide false information on a tax return or report, fail to make a required return or supply information as required by law, fail to pay taxes that are due, or attempt to evade taxes due. Specifically, this law applies when the amount of tax liability involved is more than $3,000.
It's crucial to understand that the person must act willfully and intentionally. This means that they must have knowingly provided false information or attempted to evade taxes. The law does not apply to mistakes or accidental omissions, but only to deliberate acts of fraud.
ExamplePeople v. Rosenthal, 84 A.D.3d 1282 (2d Dept. 2011). In People v. Rosenthal, the defendant, a certified public accountant, was convicted of Criminal Tax Fraud in the Third Degree under New York Tax Law § 1804. The evidence at trial showed that the defendant had underreported his income for several years, resulting in him owing less in taxes than he actually owed. The defendant argued that he did not intend to defraud the government and that any discrepancies in his tax returns were unintentional. However, the court rejected this argument and affirmed the defendant's conviction, finding that the evidence was sufficient to prove the defendant's guilt beyond a reasonable doubt. The court emphasized that the defendant's training and expertise as a certified public accountant made it unlikely that he had made an honest mistake, and that the discrepancies in his tax returns were indicative of a deliberate attempt to avoid paying his full tax liability.
People v. Woods, 178 A.D.3d 1627 (4th Dept. 2019). In People v. Woods, the defendant was convicted of Criminal Tax Fraud in the Third Degree under New York Tax Law § 1804. The evidence showed that the defendant had submitted false documents to the New York State Department of Taxation and Finance, which understated his taxable income and resulted in him owing less in taxes than he actually owed. The defendant argued that he had made an honest mistake and had not intended to defraud the government. However, the court rejected this argument and upheld the conviction, finding that the evidence supported the conclusion that the defendant acted with intent to defraud. The court noted that the defendant had filed his tax returns using professional tax preparation software and that he had to knowingly input false information to produce the fraudulent returns. The court also found that the defendant had a history of tax delinquency and that he had taken steps to conceal his income from the government, further supporting the conclusion that he acted with intent to defraud.
Related OffensesCriminal Tax Fraud in the Third Degree under New York Tax Law § 1804 is a Class D felony. The maximum sentence for a Class D felony is up to 7 years of imprisonment, a fine of up to $5,000, or both.
Criminal Tax Fraud in the Third Degree: New York Tax Law Section 1804A person commits criminal tax fraud in the third degree when he or she commits a tax fraud act or acts and, with the intent to evade any tax due under this chapter, or to defraud the state or any political subdivision of the state, the person pays the state and/or a political subdivision of the state (whether by means of underpayment or receipt of refund or both), in a period of not more than one year in excess of ten thousand dollars less than the tax liability that is due. Criminal tax fraud in the third degree is a class D felony.
Contact Stephen Bilkis & AssociatesIf you are arrested for Criminal Tax Fraud in the Third Degree under New York Tax Law § 1804, it is important to take the matter seriously and seek legal representation immediately. An skilled criminal attorney serving New York who has experienced with criminal tax matters can review the evidence against you and determine the best course of action. Contact Stephen Bilkis & Associates at 800.696.9529 to schedule a free, no obligation consultation regarding your case. We represent clients in the following locations: Manhattan, Nassau County, Queens, Bronx, Brooklyn, Long Island, Staten Island, Suffolk County, and Westchester County.