Criminal Tax Investigation in New York City

& Finding a Criminal Tax Investigation Lawyer

A criminal tax investigation in New York is an inquiry by the Internal Revenue Service (IRS) to determine whether a taxpayer has willfully violated tax laws. The inquiry is conducted by special agents of Criminal Investigation (CI) who have the authority to subpoena records, interview witnesses, and take sworn testimony. If the taxpayer is found to have committed a crime, they may be prosecuted by the Department of Justice. The penalties for tax crimes can include imprisonment, fines, and restitution. These investigations are complex and often take many months or years to complete, as agents must follow a strict set of rules and procedures designed to protect taxpayers’ rights while ensuring justice is served.

What Are the Most Common Reasons for a Criminal Tax Investigation to Be Opened?

The most common reason for the IRS to open a criminal investigation in New York is the suspicion of tax evasion. This can be based on several factors, including:

  • Inconsistent or incomplete tax records. This may indicate that the taxpayer is deliberately trying to hide income or assets by failing to report them on their tax return.
  • Large discrepancies between reported income and lifestyle. If a taxpayer appears to be living beyond their means, this may indicate they are not reporting all of their income. This applies to only the most obvious cases, as many people may have legitimate sources of income that are not reported on their taxes, such as gifts or inheritances.
  • Refusal to cooperate with an IRS audit. If a taxpayer refuses to provide the IRS with information that is requested during an audit, it may be an indication that they are hiding something.
  • A pattern of filing false or amended returns. If a taxpayer frequently files false or amended returns, it may be an indication that they are trying to avoid paying taxes.
  • Repeated failure to pay taxes. If a taxpayer has a history of not paying their taxes, this may be an indication they are trying to avoid paying taxes.

Other red flags that may trigger an investigation include making false statements on a tax return, claiming excessive deductions, or engaging in unusual or complex transactions. In general, the IRS will only pursue criminal charges if there is evidence of willful wrongdoing. However, even taxpayers who have inadvertently made mistakes on their taxes can face serious penalties, including fines and imprisonment. As such, it is always best to err on the side of caution and consult with a New York tax professional before filing your return.

How Can You Protect Yourself if You’re Under Investigation for Tax Fraud or Evasion?

If you’re under investigation for tax fraud or evasion, you can best protect yourself by hiring a lawyer. Your lawyer can advise you on what to say and do and will represent you in court if necessary. It’s also important to gather as much documentation as possible to support your case. This could include tax returns, receipts, bank statements, and any other financial records. Organizing your documentation will help your lawyer build a strong defense. Finally, try to stay calm and cooperative throughout the process. Investigators are more likely to treat you leniently if you’re cooperative and honest. Tax fraud and evasion are serious offenses, but taking the proper precautions can give you a better chance of avoiding conviction.

What Are the Potential Penalties if You’re Convicted of a Crime Related to Taxes?

Depending on the severity of the offense, tax-related crimes can result in a range of penalties. For example, New York taxpayers who fail to file their return or pay their taxes on time may be subject to a financial penalty. More serious offenses, such as tax evasion or fraud, can result in criminal charges and potential jail time. In addition, convicted taxpayers may be required to pay interest and fines, as well as any back taxes that are owed. They may lose certain privileges, such as obtaining a passport or traveling outside the country. Sometimes, taxpayers may also be required to surrender assets, such as property or investments. That’s why it is essential to consult with an experienced tax attorney if you are facing any tax-related charges.

Delia Law Can Help With Criminal Tax Investigations in New York

Delia Law has significant experience representing taxpayers under criminal tax investigation by the IRS. Our firm will work tirelessly to ensure our client’s rights are protected every step of the way. We understand that being the subject of a criminal tax investigation can be a very stressful and frightening experience. We will do everything we can to minimize the disruption to our clients’ lives and help them resolve the matter as quickly and efficiently as possible. 

We have a proven track record of success in handling these cases, and we are confident we can get the best possible outcome for our clients. If you or someone you know is under criminal tax investigation, please get in touch with us immediately so we can start working on your defense.

New York-Specific Tax Laws


New York residents are required to pay taxes on income that was earned as well as for federal taxes. In fact, some people who don’t even live in New York must pay state taxes. If you lived elsewhere but acquired the money through a source in New York, you must pay state taxes on that income.

There are four main types of taxes in New York:

  • State income tax. New York State has a graduated income state tax, which means your tax rate increases as your income increases. The state’s tax rates range from 4% to 10.90%. For example, if you make under $8,500 annually, you will only be subjected to a 4% tax rate. However, if you make $25,000,001 and over, you are now facing the higher end of the state’s tax bracket at 10.90%.
  • Local tax. The local tax is a county-specific tax, and the rates also differ based on income. For example, in Tompkins County, the local tax rate is 4%. In contrast, in Suffolk County, the rate is 4.25%. The variation in local tax rates can make a significant difference in the overall amount of taxes you owe.
  • City tax. City taxes are only applicable to those who live or have earned money in New York City. This applies to individuals, trusts, estates, partnerships, S-corporations, and corporations. The city tax rate is 3.078%, 3.762%, 3,819%, and 3.876% depending on the bracket your income qualifies for.
  • Corporate tax. If you are a business owner, you are also required to pay corporate income tax. The tax rate on your corporate income ranges from 6.50% to 7.25%. These taxes generated from businesses is one of the main sources of revenue for the state of New York, and it helps to fund many of the state’s programs and services that benefit its residents.
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