Each year, New York residents or those who did business in the state are required to file an income tax return. If an individual or business provides false information on a form or otherwise takes action to defraud the state, the perpetrator of such an act may face felony charges. This may result in a state prison sentence and other penalties if convicted.
Did You Intend to Defraud the State?
It is important to mention that a prosecutor would have to show that you intended to commit fraud when you filed a tax return that was materially false. If you simply made a mistake during filing or otherwise made a good faith effort to pay taxes owed, no tax fraud has occurred. However, this doesn’t mean that you wouldn’t be subject to financial or other penalties. In some cases, a prosecutor may have enough evidence to charge you with other crimes related to your tax return or other conduct uncovered during an investigation.
