What Are the Penalties for Tax Evasion in New Jersey?

Taxpayers must know their tax responsibilities. Generally, most U.S. citizens and permanent residents who work in the United States must file a tax return if they make more than a certain amount for the year. As such, paying your taxes is not something that you cannot avoid. If you’re required to file a tax return but fail to do so intentionally or by mistake, you could face criminal prosecution and be subject to harsh penalties. If you have been accused or charged with tax evasion in New Jersey, it’s in your best interest to contact a proficient Bergen County Criminal Defense Attorney who can mount a strong defense on your behalf. Please continue reading to learn the potential penalties you could be subject to for tax evasion in New Jersey. 

What is Considered Tax Evasion in New Jersey?

Tax evasion is the deliberate act of illegally avoiding paying taxes owed to the government. It involves intentionally misrepresenting financial information, such as income, assets, or deductions, to reduce an individual’s or corporation’s tax liabilities. Essentially, it’s the illegal attempt to pay less for your taxes than you’re legally obligated to. The following includes examples of different ways of evading your tax liability:

  • Underreporting your net income
  • Falsely claiming dependents
  • Exaggerating your tax deductions
  • Transferring assets to other parties to conceal them

Tax evasion is a serious criminal offense. The Internal Revenue Service (IRS) and the New Jersey Division of Taxation don’t take too kindly to tax evaders. They employ various methods to detect discrepancies in tax filings. If you’re under investigation or have been charged with tax evasion, seeking immediate legal representation is in your best interest.

What Are the Potential Penalties?

As mentioned above, New Jersey imposes severe penalties for individuals and businesses guilty of tax evasion. Tax evasion is a felony offense. If convicted, you could be sentenced to up to five years in prison. In addition, the court may impose significant fines of as much as $100,000 and require you to pay restitution for the unpaid taxes and any accrued interest. A tax evasion conviction can have long-lasting consequences beyond legal penalties. A felony conviction will remain on your criminal record for life. A criminal record can affect your ability to pursue higher education, employment opportunities, insurance rates, immigration status, right to vote, and more.

Given the potential long-term effects of a felony conviction, it’s in your best interest to enlist the help of a determined Bergen County criminal defense attorney from The Law Office of Carl Spector, who will develop a robust defense strategy on your behalf. Allow our legal team to fight tirelessly to protect your rights and interests.