As this post has discussed before, a New Yorker can wind up in federal prison for tax evasion. Specifically, after a conviction for tax evasion, a court can order the guilty party to spend up to five years behind bars.
However, these are not the only criminal penalties possible in a case involving criminal tax litigation. For instance, both the routine filing of taxes as well as special audits and investigations often involve taxpayers having to give statements under penalties for perjury. If the government later concludes that such statements were not truthful, additional charges can be filed.
Likewise, it is important to remember that the state of New York has its own set of law and penalties for tax-related offenses. It is possible for a person to face both state and federal charges depending on his or her circumstances.
Moreover, there are a range of civil consequences that can be imposed in connection with a tax evasion case, even when no criminal charges get filed. We’ve already discussed some of these consequences on this blog.
However, suffice it to say that state and federal tax collectors have a long reach when it comes to garnishing wages and seizing property in order to pay off a tax debt. For instance, unlike most debt collectors, the IRS even has the right to garnish a taxpayer’s Social Security check.
Moreover, a person can also lose important rights and privileges, such as his or her right to obtain a passport and legally travel overseas.
Particularly when there are allegations of dishonesty or evasive behavior, tax litigation is a serious affair that can have a major and long-term impact on a White Plains resident. Someone faced with this sort of legal action should strongly consider seeking the help of an experienced attorney.