Tax crimes & prison time: Case an example of potential penalties

On Behalf of | Jan 19, 2022 | Criminal Tax Issues

Tax crimes may seem relatively minor in the grand scheme of things. After all, those who fail to pay their tax bill do not actually hurt anyone. It may seem reasonable to expect that a bill to cover missed payments should suffice. However, as a recent case where the federal government accuses a former New Jersey democratic party leader and elected official of tax evasion highlights, this misnomer can get otherwise intelligent people into serious trouble.

Highly-educated man gets caught up in tax evasion

According to the Internal Revenue Service (IRS), the highly-educated public servant failed to report over $800,000 in income to the federal agency. The agency also claims the man used funds from his workplace accounts to pay for personal expenses, instead of using money from his own income. By claiming these personal expenses as a business expense, the IRS states he further attempted to thwart his tax obligations.

As a result, the IRS says the accused did not pay more than $250,000 in federal tax obligations.

Court cracks down on the crime

Although the court did require the accused to pay his tax obligations, along with interest and an additional financial penalty totaling $279,736, the court also sentenced the man to 14 months imprisonment and three years of supervised release.

Case an important lesson for others in similar situations

These types of penalties are not uncommon. The federal government can accuse any taxpayer who takes action to avoid paying their taxes of tax evasion — a crime that can come with years of imprisonment. In some cases, the feds could use an incorrectly filed tax return as evidence of evasion.

This case highlights the importance of those who face these types of accusations to take the allegations seriously. The attorneys at Goldburd McCone are familiar with these cases and can provide legal counsel on the best course of action to better ensure your interests are protected.