New York Tax Law § 1803: Criminal Tax Fraud in the Fourth Degree

New York Tax Law § 1803 establishes criminal tax fraud in the fourth degree, which is a crime committed when a person intentionally and willfully provides false information on their tax returns or other tax-related documents. This law is designed to prevent tax fraud and ensure that everyone pays their fair share of taxes.

Under New York Tax Law § 1803, a person commits criminal tax fraud in the fourth degree if they willfully and intentionally 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 between $1,000 and $3,000.

Note that the law specifies 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.

People v. Rodriguez, 69 A.D.3d 884 (2d Dept. 2010). In People v. Rodriguez, the defendant was charged with Criminal Tax Fraud in the Fourth Degree under New York Tax Law § 1803. The defendant had allegedly filed false tax returns for several years, underreporting his income and claiming fraudulent deductions in order to pay less in taxes. The evidence against the defendant included documents and witness testimony showing that he had deliberately misrepresented his income and deductions. 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 defendant's conviction, finding that the evidence supported the conclusion that the defendant acted with intent to defraud.

People v. Williams, 115 A.D.3d 1309 (3d Dept. 2014). In People v. Williams, the defendant was convicted of Criminal Tax Fraud in the Fourth Degree under New York Tax Law § 1803. The evidence showed that the defendant had underreported his income for several years and had claimed fraudulent deductions, resulting in him owing less in taxes than he actually owed. The defendant argued that he had not intended to defraud the government. However, the court rejected this argument and affirmed the defendant's conviction, finding that the evidence supported the conclusion that the defendant acted with intent to defraud.

The court noted that the defendant had a history of tax delinquency and that he had taken steps to conceal his income from the government, such as using multiple bank accounts and providing false information to his tax preparer. The court also found that the defendant's claim of an honest mistake was contradicted by the fact that he had repeatedly underreported his income and claimed fraudulent deductions over a period of several years.

1. Criminal tax fraud in the fifth degree. Section 1802
2. Criminal tax fraud in the third degree. Section 1804
3. Criminal tax fraud in the second degree. Section 1805
4. Criminal tax fraud in the first degree. Section 1806

Criminal Tax Fraud in the Fourth Degree under New York Tax Law § 1803 is a class E felony. The maximum sentence for this offense is four years in prison. However, the actual sentence will depend on several factors, including the defendant's criminal history, the amount of tax liability involved, and other mitigating or aggravating circumstances.

A person commits criminal tax fraud in the fourth 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 subdivision thereof, 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 three thousand dollars less than the tax liability that is due.  Criminal tax fraud in the fourth degree is a class E felony.

If you are accused of criminal tax fraud in the fourth degree, it's important to take the charges seriously. A conviction can have severe consequences, including fines, prison time, and a criminal record that can follow you for the rest of your life. If you are facing charges, contact an experienced criminal attorney serving New York who can help ensure that your legal rights are protected. 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.