Tax Fraud & Tax Evasion in New York City

& Finding a Tax Fraud Lawyer

Tax fraud and tax evasion are illegal activities that can result in stiff penalties, including fines and imprisonment. However, there are critical differences between the two. Tax fraud is a deliberate attempt to misrepresent information on a tax return to reduce the amount of taxes owed. For example, a taxpayer might claim false deductions or inflate their expenses. Tax evasion in New York is an illegal act of purposefully avoiding paying taxes. This might involve hiding income or assets, failing to file a return, or failing to pay taxes when they are due. 

While both tax fraud and tax evasion can lead to criminal charges, tax evasion is considered a more serious offense. This is because it represents a willful attempt to cheat the government out of revenue, whereas tax fraud is typically seen as an act of deception. If a person commits tax evasion, they likely didn’t pay their taxes or didn’t file them at all. As a result, taxpayers convicted of tax evasion may face more severe consequences than those convicted of tax fraud.

Filing your taxes can be a complicated and stressful process; you must ensure you’re honest and accurate in your return. If you’re caught committing tax fraud or tax evasion, the consequences can be serious. You may be subject to fines, interest, and penalties, and in some cases, you may even face jail time. In addition, the Internal Revenue Service (IRS) may audit your return for multiple years, which can be a time consuming and expensive process. Being honest on your taxes can save you the hassle and stress of dealing with the IRS down the road.

Different Methods Used To Commit Tax Fraud and Tax Evasion

There are several different ways that people commit tax fraud. The most common method is by claiming false deductions or inflated business expenses. People might also try to hide income by using offshore bank accounts or by under-reporting the amount of money they’ve earned. Others may attempt to claim personal expenses as business expenses to get a bigger tax deduction. Whatever the method, tax fraud is a serious crime that can lead to heavy fines and even jail time.

The most common way people try to avoid paying taxes in New York is by failing to report all of their income. Others might try to claim excessive deductions or take advantage of loopholes in the tax code. No matter how someone tries to evade taxes, the result is the same — they end up owing back taxes, plus interest and penalties. In some cases, criminal charges may be filed as well.

How To Protect Yourself From Becoming a Victim of Tax Fraud or Tax Evasion

There are a number of ways that individuals can protect themselves from becoming victims of tax fraud or tax evasion. First, it is important to be aware of the potential risks. Be sure to keep your personal information safe and secure, and be diligent about who has access to it. If you receive any suspicious communications that claim to be from the IRS or another tax authority, do not respond, and do not click on any links or attachments. Instead, report the incident to the authorities.

It is also a good idea to review your tax filings carefully before submitting them. Check for any errors or red flags that could indicate fraud or evasion. If you are using a New York professional tax preparer, make sure they are reputable and trustworthy. Finally, stay up to date on the latest scams and schemes so that you can recognize them if you come across them. Taking these precautions can help safeguard yourself against becoming a victim of tax fraud or tax evasion.

Delia Law Can Help With Tax Fraud and Evasion in New York

At Delia Law, we understand the complexities of tax law and the challenges of complying with all the rules and regulations. We also know that sometimes people make mistakes or knowingly engage in tax fraud or evasion. If you are facing an IRS audit or investigation, we can help. Our experienced tax attorneys will work with you to develop a strategy for responding to the IRS and protecting your rights. We will also represent you in court if necessary. We will aggressively defend your case and work to get the best possible outcome.

We also proudly support victims of tax fraud and tax evasion. If you have been the victim of a tax scam, we can help you recover your losses and get your life back on track. We are hyper-focused on the latest techniques and strategies used by tax scammers, and we are committed to helping our clients protect their hard-earned money. If you are facing tax-related problems, contact Delia Law for help. We are here to protect your rights in New York and fight for you.

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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