What are the penalties for tax evasion in New Jersey?

handcuffs taxes

When private individuals or businesses fail to pay their tax liabilities, the state and federal governments can charge them with tax evasion. Tax evasion is a serious crime in New Jersey that carries significant penalties. In the U.S., those that earn a certain amount of income must make mandatory contributions to the local, state, and national government to cover the costs of general government services. Those that evade their tax responsibilities can face hefty fines and even jail time. If you are currently facing tax evasion charges, it is in your best interest to retain the legal services of a skilled Camden County Criminal Defense Attorney who can fight on your behalf to help you reach a favorable outcome. Please continue reading to learn about the potential penalties for tax evasion in New Jersey. 

What is tax evasion in New Jersey?

In New Jersey, tax evasion is defined as the failure to pay or deliberate underpayment of taxes. It occurs when you pay less than you are legally obligated to. You can look at tax evasion as taxpayers keeping the IRS from discerning their true tax liability. A common action that is considered tax evasion is when people attempt to evade paying their taxes by failing to report all or some of their income. In other cases, an individual may exaggerate their tax deductions or transfer/hide assets to reduce the amount they owe. Whatever the case, those who fail to pay their tax liabilities will be guilty of tax evasion and subject to severe penalties.

What are the potential consequences?

As mentioned above, tax evasion carries harsh penalties. However, the severity of your penalties will vary depending on the amount of money you deliberately withheld and whether the state or federal government is prosecuting your case. In most cases, tax evasion is classified as a felony punishable by up to 5 years in jail and fines of up to $100,000. However, tax evasion offenses are only elevated to a felony offense if it can be proven that you intentionally failed to fulfill your tax obligations. In cases involving failing to file a tax return when you are legally required, you will be charged with a misdemeanor. Depending on the specific circumstances, it is punishable by up to one year in jail and fines of up to $25,000.

In some cases, individuals or businesses may unintentionally file a false tax return or make other critical mistakes when fulfilling their tax obligations. If charges are brought under these circumstances, you must acquire quality legal counsel that can help you prove your innocence. If you are facing tax evasion charges, contact a dedicated Camden County criminal defense attorney from the legal team at Thomas DeMarco & Associates, LLC. Our firm is committed to defending our client’s rights and interests.

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