NATIONALLY RECOGNIZED FEDERAL LAWYERS
Last Updated on: 3rd August 2023, 09:43 pm
In New York, every taxpayer is legally required to provide the government with a tax return within the required time. It must be accurate, based on actual income and more. Should a tax return not be properly filed, filed late, inaccurate, fraudulently and more; criminal penalties could be given to those determined to be responsible.
Wilfully Failing To File Tax Return Or Required Documents
A taxpayer can be guilty of felony liability if they fail to file a tax return for even a single year. They can be convicted if it is proven they intended to evade complying with tax law as well as an intentional underpayment of tax in an amount that meets a legal monetary threshold. A taxpayer who willfully does not file a tax return or intentionally does not pay the required tax of more than $3,000 could be facing felony prosecution.
Willfully Making Or Filing A False Tax Return
This occurs when a taxpayer intentionally provides a tax return or documents associated with it; they know to be materially false or contain fraudulent information. It also applies when any material information on a tax return is intentionally omitted and submitted as a legitimate tax return. It could apply to information provided during a tax return audit or investigation. It is against the law to fail to provide any requested information within the time frame provided by applicable tax regulations.
Under New York law, any tax professional who intentionally provides documents with false information or makes assertions for a taxpayer during a tax return or audit they know to be false, is guilty of accomplice liability. They could receive the same penalties as the taxpayer they represented. It could be based on a substantial understatement of tax liability. The threshold for this is $3,000. Felony accomplice liability can be charged if it is proven a tax professional intended to evade taxes or defraud for amounts of $3,000 or more.
Penalties For Late Tax Returns
Should a New York taxpayer fail to file their return on the due date with no taxes being owed; they will be fined $50. Should a taxpayer owe tax and fail to file their return 60 days or less after the due date; they could be fined 10 percent of the tax due for the first month. A taxpayer in this situation could be required to pay an additional 1 percent for each month or part of a month they do not file their tax return. The amount won’t be more than 30 percent of the tax due. Should a taxpayer file a return more than 60 days late and owe taxes, they can be fined 10 percent of the tax due for the first month. A taxpayer could be required to pay an addition 1 percent for each month or part of a month they do not file their tax return. This amount won’t be more than 30 percent of the tax due. They may also be required to pay the lesser amount of $100 or 100 percent of the tax shown to be due on their return or $50.
Penalties For Failing To Pay Tax
Should a New York taxpayer file a return on time, but fail to provide payment for the taxes due; they may have to pay 10 percent of the tax due for the first month. They will then have to pay an additional 1 percent for each month or partial month. This amount of payment will not be over 30 percent. Should a taxpayer fail to pay over 25 percent of the taxes owe, they may have to pay 10 percent of taxes they didn’t pay. This amount can be decreased if there is substantial authority to do such a thing. Should a taxpayer fail to pay the tax amount they owe or any overdue tax they owe, they may also be required to pay a sum equal to twice the amount of the tax they failed to pay. They may also be required to pay interest on the unpaid tax. This interest will be at their tax rate, or 14.5 percent; whichever is greater.
When a taxpayer in New York is charged with filing a false tax return and more; it can be expensive. If a taxpayer’s actions cause them to be convicted of tax fraud, they may be forced to pay penalties, fines, and even sentenced to serve time in prison. It can be a very complicated situation. An experienced attorney will know how to analyze the details of such a case. They’ll know if its possible to gets fines and penalties reduced or eliminated. These legal professionals can protect a taxpayer’s interest when dealing with any type of governmental taxing authority.